**Munjal and Saini Transition to Airlearn, Securing New Funding**
Munjal and co-founder Roman Saini are making a notable shift by leaving Unacademy to focus on Airlearn full-time. As part of this transition, Munjal is currently negotiating with existing investors, including Peak XV and Nexus Venture Partners, for additional funding. Ongoing discussions involve several moving parts, with expectations that investors like General Atlantic and SoftBank will maintain their shareholding in the newly formed entity.
Nexus Venture Partners holds the largest stake in Unacademy at 13.8%, followed closely by Sequoia Capital at 13.7% and SoftBank Vision Fund at 11.6%, according to data from startup intelligence firm Tracxn. The founders of Unacademy collectively own 9.2%, while the company’s ESOP pool represents 11.2%, with the remainder held by other investors. The deal is anticipated to finalize this quarter, with approximately 10% of Unacademy’s cash reserves, which totaled ₹1,200 crore as of May, being allocated to Airlearn as part of the restructuring.
In FY24, Unacademy reported total revenue of ₹988.4 crore, reflecting a 5.3% decrease from ₹1,044 crore in FY23. However, the company significantly reduced its net loss to ₹631 crore from ₹1,678 crore the previous year. Munjal noted in a public statement that Unacademy has successfully cut its cash burn in its core operations to under ₹200 crore, down from over ₹1,000 crore three years ago. Initially, Munjal faced challenges in transitioning to Airlearn full-time due to the high burn rate, prompting the board to request a reduction in cash burn before approving his departure.
The restructuring signifies a strategic shift for Munjal, who aims to develop Airlearn into a global, product-first company focused on AI-driven personalized learning. Unacademy has raised $880 million from notable investors, including SoftBank, Temasek, Tiger Global, Sequoia Capital, and Peak XV. Its last funding round, a $440 million Series H in 2022, valued the company at $3.4 billion. However, as the pandemic-fueled edtech boom subsided and students returned to traditional classrooms, Unacademy’s expansion into offline coaching did not align with Munjal’s vision as a tech-first entrepreneur.
In a recent interview, Munjal confirmed that a portion of Unacademy’s bank balance has been designated for Airlearn but refrained from discussing specific details of the deal. He emphasized the belief that education, particularly personalized tutoring, will significantly benefit from innovative approaches in the future.
**FAQ**
*What is the focus of Airlearn?*
Airlearn aims to become a global leader in AI-driven personalized learning, emphasizing a product-first approach to education.
