Unacademy CEO dismisses rumors of $800M acquisition by Allen Institute
What's the story
Unacademy co-founder and CEO Gaurav Munjal has publicly refuted rumors of a potential $800 million acquisition by Allen Career Institute. The speculation suggested that the edtech giant was in talks for a deal that would significantly undervalue its 2021 valuation of $3.4 billion. Munjal addressed these rumors on LinkedIn, labeling them as baseless.
CEO's statement
Munjal highlights Unacademy's growth and future plans
In his LinkedIn post, Munjal wrote, "This year will be Unacademy's best in terms of growth in the offline business and overall unit economics. We have many years of runway. We are building Unacademy for the long run." He also clarified that the company is not looking at any sale or merger and acquisition (M and A) activity, asking people to ignore such rumors.
Company performance
Financial health and subsidiary growth
Munjal also emphasized Unacademy's financial health and growth in his post. He disclosed a 30% expansion in offline centers, a big improvement in unit economics, and a 50% cut in cash burn at the group level. With $170 million in cash reserves and no debt, the company reportedly has a financial runway of over four years.
Industry response
Physics Wallah's CEO responds to Munjal's post
Alakh Pandey, the founder and CEO of Physics Wallah, also reacted to Munjal's post. Pandey wrote, "This sounds so good. I miss the old times of fierce competition. I am waiting for the same." Notably, Pandey had rejected Unacademy's ₹75 crore acquisition offer to keep his company independent. Such a decision transformed Physics Wallah from a YouTube channel into a unicorn worth $2.8 billion by 2024.