‘You spent company money on Oberoi suites, private jets,’ alleges ex-employee, Gaurav Munjal reacts, ‘Don’t stoop low, ESOP fixes ongoing’

Edtech startup Unacademy has modified its employee stock option plan (ESOP), significantly shortening the exercise window for former employees.

Unacademy revises ESOP

Earlier, employees who exited the company had up to 10 years to buy the stock options they had earned during their tenure. Under the revised policy, they must now do so within a month of leaving the company.

This comes amid talks with Ronnie Screwvala-founded Upgrad for a potential acquisition of the Gaurav Munjal-founded edtech startup at nearly $300 million valuation, more than a 90% reduction from the $3.4 billion at which it had last raised capital in 2021.

In an email to former employees, the company declared that its board has approved a one-time 30-day window from the effective date of the amended plan, allowing exited employees to purchase all the stock options they had earned.

“As per applicable tax laws in India, any exercise of your vested options will trigger an immediate tax liability on you,” it said. Exercising refers to the conversion of stock options to actual shares.

Presently, Unacademy’s former employees are taking to social media to criticise the company’s decision.

Former employee questions edtech startup, founder responds

An employee shared on X, “Got an email from my ex employer @unacademy today saying our exercise window has been changed from 10 years to 30 days forcing us to cough up a huge amount to pay taxes or forfeit our vested esops. @gauravmunjal this is an awful thing to do. Makes the startup industry look bad.”

Munjal responded to the post saying, “You’re reading this wrong. Liq pref is the main issue not exercise period. This is being done so that employees can salvage some value of their ESOPs. And few folks have already opted for exercising options. I sent a detailed email to clarify. @ravihanda has posted it as well.”

To which the employee told his former boss, “Your reputation makes it hard to trust you, Gaurav.”

“You spent company money on Oberoi suites, private jets, bodyguards, egoistic acquisitions, paid PR campaigns to improve your image - the list is long.

In short, you had poor governance of the company & your self,” he added.

Munjal dismissed the allegation saying ESOP fixes are ongoing, so Mahesh should not do any “personal attack.”

“Don’t make it dirty,” the Unacademy founder reacted. “I got the Oberoi suite for $100 a night in Covid and it made me more productive. I have maybe travelled 3 or 4 times on a PJ, and except once they were all paid for by me personally. Everything was declared to the Board,” he elaboarted. 

“There is no reason for personal attacks and stooping so low. I am still trying to figure out different solutions for the ESOPs of exited employees,” Munjal further added.

Your reputation makes it hard to trust you, Gaurav.

You spent company money on Oberoi suites, private jets, bodyguards, egoistic acquisitions, paid PR campaigns to improve your image - the list is long.

In short, you had poor governance of the company & your self. https://t.co/6pmsKLd0hu

— M (@mister_whistler) December 22, 2025

Confirming the development, Gaurav Munjal told ET that Unacademy is under M&A discussions at a valuation of Rs 2,650 crore (nearly $300 million) in an all-stock deal.

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