News · Education & Skilling

Unacademy shifts offline centres to franchise model

By Startup Enthusiast · 15 January 2026

What they do

Unacademy is an online platform for competitive exam preparation and learning

It is transitioning from company-run offline centres to a franchise model by April 2026

The shift follows failed acquisition talks and a near-90% valuation drop from its peak

Unacademy is transitioning from company-operated offline centres to a franchise model.
The transition is expected to be completed by April 2026.
Franchise owners will manage day-to-day operations; Unacademy provides academics, technology, and brand reach.
CEO Gaurav Munjal announced the shift in an internal email to employees.
Acquisition talks with upGrad fell through over valuation differences.
Unacademy had earlier explored acquisitions by K-12 Techno Services and PhysicsWallah, but talks failed.
It also held acquisition discussions with Allen Career Institute and BYJU'S-owned Aakash, which failed.
Unacademy shut down Relevel, its job classifieds and upskilling platform.

Unacademy was the second most valuable edtech startup after BYJU's at its peak.
Its cost-correction began after 2022 when pandemic demand tapered and funding tightened.
Offline education is cost-heavy with high fixed expenses for real estate, faculty, and local marketing.
Aggressive pricing by PhysicsWallah and poor economics at FIITJEE, Allen, and Aakash forced Unacademy's hand.

Unacademy was founded in 2015 as a YouTube channel, focusing on K-12 and competitive exam preparation.
It offers preparation for 200+ exams across 60+ exam categories.
The platform has over 10 crore learners, 14k+ educators, and 1M+ video lessons.
Offline expansion launched in 2022 to diversify revenue as online demand softened.
Offline centres contributed nearly 40% to Unacademy's top line by 2024.
Airlearn is a global language-learning app positioned against Duolingo.
Popular goals include UPSC CSE, IIT JEE, NEET UG, CAT, and CBSE class 12.
PrepLadder and Graphy were cash-flow positive for the full year 2025.

CY 2026 focused on growth rather than survival, per Munjal.
Unacademy expects one of the healthiest cost structures in the sector after the transition.
Unacademy will be online-first going forward, returning to its 2015 model.

SoftBank (existing)
General Atlantic (existing) — Pushed for merger with BYJU'S-owned Aakash in 2023.
Tiger Global (existing)