**Unacademy Shifts Focus Back to Online Model, Exiting Offline Centers**
Unacademy is set to transition away from its company-operated centers, opting instead to establish franchise partnerships, as announced by co-founder Gaurav Munjal in an email to employees on January 14. This strategic move aims to streamline operations and enhance profitability, aligning with the company’s asset-light and capital-efficient franchise model that has proven successful with local operators.
Munjal emphasized that by April, when the transition is finalized, Unacademy will boast one of the most robust cost structures in the edtech sector. This decision comes in the wake of a broader trend among edtech firms, which have been focusing on profitability and scaling back growth following a decline in funding. After the surge in online learning during the pandemic, Unacademy had ventured into offline centers to maintain growth, but this latest shift indicates a renewed commitment to its online-first approach, reminiscent of its beginnings in 2015.
In addition to this transition, Unacademy has been exploring options for its AI language learning vertical, Airlearn. However, recent reports suggest that plans to divest Airlearn have been abandoned, with Munjal and co-founder Roman Saini remaining with the company. Sumit Jain will continue to lead the test preparation segment, which encompasses various verticals, including Unacademy and PrepLadder.
This strategic pivot follows the collapse of a potential acquisition by upGrad, which would have marked a significant consolidation in India’s edtech landscape. Discussions regarding Unacademy’s sale have repeatedly faltered over the past two years due to mismatched valuation expectations. In November, upGrad proposed a share-swap deal valuing Unacademy at $300–400 million, a stark contrast to its $3.4 billion valuation during the 2021 funding boom. Unacademy, backed by major investors like SoftBank and Sequoia Capital, has raised approximately $880 million since its inception.
As Unacademy refocuses on its online roots, the company aims to navigate the evolving edtech landscape and capitalize on digital opportunities.
**FAQ**
**Q: What is Unacademy’s new strategy regarding its business model?**
A: Unacademy is transitioning from company-operated centers to franchise partnerships, aiming to enhance profitability and return to an online-first model.
