Unacademy co-founder and CEO Gaurav Munjal on Wednesday confirmed that the edtech agency is engaged in merger and acquisition (M&A) discussions, including that the corporate would pursue a deal provided that it ends in a “win-win scenario” and creates a stronger mixed entity.

His feedback, made in an in depth publish on X as Unacademy marked 10 years since its formal launch, come amid experiences that upGrad is in talks to amass the corporate at a valuation of $300 million to $320 million. That determine is sort of 90% decrease than Unacademy’s peak valuation of about $3.5 billion throughout the 2021 funding growth.

In his publish, Munjal acknowledged that Unacademy might now be valued at lower than $500 million. He mentioned the earlier obsession with valuation contributed to strategic missteps on the Bengaluru-based startup.

He additionally outlined how shifting learner behaviour, heightened competitors and the corporate’s personal decisions reshaped the enterprise over the previous a number of years.

Munjal traced Unacademy’s origins to 2010, when he created a YouTube channel whereas in school to assist buddies with pc science ideas. The undertaking grew when Roman Saini joined in 2014, and the duo scaled their channel into what grew to become India’s prime training YouTube vacation spot, particularly after Saini’s UPSC content material gained tens of millions of views.

The formal launch came about in December 2015, with the aim of constructing a tech-first training platform powered by high-quality educators and free content material.

Between 2015 and 2019, Unacademy expanded primarily via natural development, including educators and attracting tens of millions of learners with out counting on efficiency advertising. The corporate positioned itself as a know-how participant working in training, incorporating gamification options akin to streaks and “information hats”, which educators and college students embraced.

A serious inflection level got here in 2019, when Unacademy launched its subscription product providing stay courses for aggressive exams.

Income rose sharply, scaling from zero in January 2019 to $1.8 million by September that yr. By 2020, the corporate reached almost a million paid subscribers, raised a number of funding rounds, and entered the unicorn club at a valuation of $1.5 billion. By 2021, it had raised greater than $700 million throughout rounds.

Put up-covid reversal and aggressive stress

The pandemic-driven surge didn’t final. Munjal mentioned the corporate misinterpret the endurance of Covid-era demand and expanded quickly, burning vital capital to amass market share. As learners returned to offline teaching in 2022 and opponents provided related merchandise at a fraction of the worth, Unacademy started to lose market share and skilled its first section of sustained degrowth.

He famous that the edtech market shifted in the direction of lower-priced supplemental choices, whereas Unacademy had turn out to be complacent about pricing and product innovation. The corporate additionally struggled with the transition from a pure on-line mannequin to working offline centres, an space the place it had restricted expertise.

In accordance with Munjal, the final three years had been probably the most tough interval for the founders and the corporate. Inside pressures mounted because the crew labored to cut back money burn, handle investor expectations and arrest declining momentum.

“Month-to-month panic assaults had been a standard factor,” he wrote, including that the management crew and mentors performed a essential function in navigating the downturn.

Price cuts, restructuring and a return to fundamentals

Unacademy started a pointy restructuring in 2022, decreasing annual burn from about Rs 1,400 crore to lower than Rs 175 crore in 2025.

It lower prices, lowered subscription pricing, strengthened its YouTube presence and returned to its unique playbook of constructing high-quality instructional content material and promoting subscriptions.

For FY25, the SoftBank-backed agency reported Rs 826 crore in income and decreased internet losses by 31 % year-on-year to Rs 436 crore. Munjal mentioned the corporate now has a leaner construction, a “decades-long runway” on the stability sheet and a clearer pathway to profitability.

“We may be price lower than $500 million right this moment in comparison with $3.5 billion three years in the past,” he mentioned, including that he not focuses on valuation however on product high quality, unit economics and sustainable development.

Confirming the corporate’s openness to strategic consolidation, Munjal mentioned Unacademy will proceed with a merger or acquisition provided that it strengthens the enterprise. Media experiences have indicated that upGrad is evaluating a possible acquisition, though neither firm has disclosed particulars.

Regardless of the setbacks, Munjal mentioned Unacademy stays a resilient platform with tens of millions of energetic learners and over one billion YouTube views yearly. He described 2025, not 2021, as the corporate’s “greatest yr”, arguing that it represents a interval of renewal after a turbulent section.

“Just a few unhealthy strategic calls set us again by a couple of years, however we’re stronger than we ever had been,” he wrote, including that Unacademy continues to give attention to its core mission of constructing accessible, high-quality instructional merchandise.