In a significant Unacademy leadership change, Bengaluru-based edtech unicorn Unacademy has announced that co-founders Gaurav Munjal and Roman Saini are stepping away from their active roles in the company. The responsibility of steering Unacademy forward now lies with the third co-founder, Sumit Jain. This move marks a pivotal transition for the company, which is currently navigating a shift in business strategy amid mounting operational and financial challenges.
The announcement signals the end of an era for Unacademy, once a poster child of India’s edtech boom. Munjal, who served as CEO, was a prominent face of the brand, while Saini was deeply involved in content and academic operations. Their exit from day-to-day affairs reflects both the internal restructuring and the company’s need to chart a new course to remain competitive in a rapidly evolving education market.
Strategic Shift Toward Offline Learning and New Ventures
Unacademy, originally known for its digital-first approach to test preparation, is undergoing a significant realignment of its business model. The company is now emphasizing its offline learning centres and has recently launched AirLearn, a language learning app designed to tap into new user demographics and markets.
This shift comes after a difficult two-year period during which Unacademy laid off over 1,300 employees across various departments, including tech, leadership, and content. In 2023, high-ranking executives such as COO Vivek Sinha and CFO Subramaniam Ramachandran also departed, indicating broader issues within the company’s leadership framework and highlighting the ongoing Unacademy leadership change.
Financial constraints continue to loom large. Despite being backed by global investors like Facebook, Peak XV Partners (formerly Sequoia Capital), and General Atlantic, Unacademy has been unable to secure fresh funding since its last capital raise in August 2021. Though once valued at $3.4 billion, analysts believe the company is struggling to maintain that valuation amid aggressive cost-cutting and strategic pivots.
Uncertain Future Amid Retreat from Past Acquisitions
While Gaurav Munjal previously claimed in late 2023 that the company had cut its cash burn by 60% and had financial runway for the next four years, recent developments suggest otherwise. In early 2024, Munjal had optimistically projected the company was heading for its “best year yet,” but this optimism has been tempered by the Unacademy leadership change, leadership exits and the narrowing of business focus.
The company has significantly scaled down its operations, shutting down or winding up most of the 12 acquisitions made during the 2020 edtech funding surge. The once-dominant online test prep business is no longer the core focus. Instead, Unacademy is concentrating on a handful of ventures, primarily in the offline and language-learning spaces.
In a further indication of its challenges, Unacademy has reportedly held unsuccessful acquisition or bailout talks with established players like Allen, PhysicsWallah, Veranda Learning, K12 Techno, and Bodhitree Systems over the past two years.
As part of the Unacademy leadership change, Sumit Jain steps in to lead the next phase, Unacademy finds itself at a crossroads, grappling with a transformed education landscape, a reduced workforce, and the difficult task of rebuilding investor and user confidence.
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