Unacademy CEO denies reports of deal with Allen Institute, says 'We are not doing any sale or M&A'

Two days after reports emerged about Unacademy’s potential talks with Allen Institute for an acquisition, CEO Gaurav Munjal clarified that the edtech startup is not looking for "any sale or M&A".

In a post on X (formerly Twitter), Munjal addressed the speculation, stating, "I have said this before, I’ll say it again. 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."

Munjal emphasized that the company remains focused on long-term growth. "We are not doing any sale or M&A. Ignore the rumours," he added.

I have said this before, I’ll say it again. 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. We are not doing any Sale or M&A. Ignore the Rumours.

— Gaurav Munjal (@gauravmunjal) December 7, 2024

In a follow-up post, Munjal highlighted the company's financial standing, stating that Unacademy has cash reserves of $170 million, no debt, and a runway exceeding four years.

He highlighted that Unacademy Centres witnessed a 30% growth in business with significant improvements in unit economics, while the online test preparation segment, despite facing degrowth, saw notable enhancements in efficiency. Munjal also shared that the group’s cash burn has been reduced by 50%.

Quick Year In Review:

- Unacademy Centres’ Business grew by 30% with significant improvement in Unit Economics
- Online Test Prep Business had degrowth but we we were able to improve Unit Economics significantly
- Cash Burn at Group Level is further down by 50%

— Gaurav Munjal (@gauravmunjal) December 7, 2024

Munjal added that Graphy, one of Unacademy’s verticals, achieved 40% profitable growth, and Airlearn has reached an annual recurring revenue (ARR) of nearly $400,000 in the U.S. within just a few months of its launch.

- We have healthy Cash Reserves of $170M with No Debt and a Runway of 4+ years
- Graphy’s Business grew by 40% Profitably
- Airlearn has crossed almost $400k ARR in US within few Months of Launch

— Gaurav Munjal (@gauravmunjal) December 7, 2024