Unacademy
Unacademy is an Indian educational technology company founded in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh, operating an online platform that delivers live classes, recorded lessons, and preparation materials primarily for competitive examinations including UPSC civil services, JEE engineering entrance, and NEET medical entrance.[1][2][3]
Originating as a YouTube channel in 2010 before formal incorporation under Sorting Hat Technologies Private Limited in Bengaluru, Unacademy employs a freemium business model where basic content is free and revenue derives from paid subscriptions, educator commissions, and premium features, serving millions of learners across India.[4][5][6]
The company secured unicorn status in 2020 after raising over $880 million in funding from investors such as SoftBank and General Atlantic, achieving a peak valuation of $3.44 billion in 2021 amid the edtech sector's pandemic-driven expansion.[2][7][8]
However, post-2022 market corrections in edtech have prompted multiple workforce reductions totaling approximately 2,000 employees, including 250 layoffs in 2024 targeted at underperforming sales roles, reflecting broader industry challenges in achieving profitability after aggressive growth.[9][10][11]
Founding and Early History
Inception and Founders
Unacademy was founded in 2015 by Gaurav Munjal, Hemesh Singh, and Roman Saini, initially operating as a YouTube channel that delivered free video lectures targeted at competitive examinations in India, including the UPSC Civil Services Exam, Joint Entrance Examination (JEE) for engineering admissions, and National Eligibility cum Entrance Test (NEET) for medical admissions.[6][2] The platform emerged from Munjal's earlier experiments with educational content on YouTube, which evolved into a structured initiative upon the involvement of his co-founders, with the company formally incorporating as Sorting Hat Technologies Private Limited in December of that year.[12] Gaurav Munjal, who holds a B.Tech in Computer Science from NMIMS University in Mumbai, provided the entrepreneurial drive, having begun uploading educational videos as an engineering student to fill gaps in accessible learning resources.[13] Hemesh Singh, an engineer and prior Chief Technology Officer at Flatchat, a messaging app startup, handled the technical infrastructure, enabling scalable video delivery without reliance on physical classrooms.[14][15] Roman Saini, a medical doctor who cleared the AIIMS entrance at age 16 and the UPSC exam at 22—becoming one of India's youngest Indian Administrative Service officers before resigning—contributed expertise in exam strategies, particularly for UPSC preparation, drawing from his firsthand success in high-stakes testing.[16][17] The founders' core motivation stemmed from the structural barriers in India's competitive exam ecosystem, where traditional coaching institutes demanded high fees, geographic relocation, and limited seats, excluding many aspirants from quality instruction.[18] By prioritizing video-based content from subject experts, Unacademy sought to democratize access, allowing self-paced learning grounded in proven teaching methods over rote institutional models. This resonated empirically in the channel's early subscriber surge, as millions of students in a nation with over 10 million annual competitive exam takers turned to free, structured resources amid widespread demand for alternatives to costly offline prep.[19][8]Transition from YouTube to Platform
Unacademy originated as a YouTube channel in 2010, where Roman Saini uploaded free video lessons focused on competitive exam preparation, such as the Indian Administrative Service (IAS) exams, amassing initial viewership through accessible content.[4] In December 2015, founders Gaurav Munjal, Hemesh Singh, and Roman Saini formally launched the Unacademy mobile app, transitioning from passive video viewing to an interactive platform offering free recorded lectures and basic engagement tools, aiming to scale beyond YouTube's limitations.[4] This app launch marked the initial pivot toward a structured digital ecosystem, incorporating user interactions to refine content delivery based on early feedback from exam aspirants.[8] By 2018, Unacademy began enhancing its app with advanced features, including live interactive classes, mock tests, and personalized learning paths, responding to user demands for structured preparation that improved exam success rates over standalone videos.[20] The company initiated development of a subscription model on January 3, 2019, launching Unacademy Plus on January 30, 2019, which introduced paid access to premium live sessions, recorded videos, gamified elements like leaderboards, and analytics-driven recommendations to track progress and adapt to individual performance.[21][22] This shift from freemium to subscription-based revenue enabled deeper personalization, with the model achieving an annual recurring revenue of $30 million by late 2019.[6] The COVID-19 pandemic in 2020 accelerated adoption, as nationwide lockdowns drove a surge in online learning demand; Unacademy reported record-breaking growth in April 2020, with exponential increases in video views, revenue, and active users, reaching over 30 million registered users and more than 1 million monthly studying students from 150,000 in January.[23][24] This period solidified the platform's scalability, integrating real-time doubt resolution and adaptive testing to capitalize on the shift, resulting in millions of app downloads and heightened engagement metrics tied to verifiable improvements in user retention and exam outcomes.[23]Business Model and Operations
Core Educational Offerings
Unacademy operates a freemium model, providing free educational content primarily through its YouTube channel and app to attract users, which funnels them toward paid subscriptions offering enhanced features for competitive exam preparation.[25][26] The platform initially gained traction with free video lessons on UPSC Civil Services Examination (CSE) topics before expanding to paid tiers that include interactive live sessions, doubt-clearing mechanisms, and comprehensive test series.[27][8] Paid subscriptions such as Unacademy Plus and Iconic (or ICON) target aspirants for exams including UPSC CSE, IIT-JEE, NEET-UG, GATE, and banking recruitments, granting access to structured courses, downloadable PDFs, daily practice questions, and 1:1 live mentorship from top educators.[28][29][30] These tiers emphasize live interactive classes led by subject experts, often recruited from coaching hubs like Kota, alongside recorded lectures and adaptive practice tools to simulate exam conditions.[31] Content is delivered in bilingual formats, primarily English and Hindi, to extend reach into tier-2 and tier-3 cities where vernacular accessibility addresses regional learning barriers.[32] In 2022, Unacademy introduced a hybrid learning model by launching offline centers, starting with its first facility in Kota in June, followed by expansions to cities including Jaipur, Bengaluru, Delhi, and Chandigarh.[33][34] These centers complement digital offerings with in-person classes from the same educator pool, high-tech libraries, and integrated online access, aiming to blend structured physical environments with virtual flexibility for exams like IIT-JEE and NEET-UG.[35][36] By October 2025, the network had grown to over 20 cities, including recent additions like Srinagar, focusing on foundational and advanced courses for classes 8 through 12 alongside competitive prep.[37][27]Expansion Strategies and Acquisitions
Unacademy expanded its portfolio through targeted acquisitions to diversify beyond core competitive exam preparation, acquiring specialized platforms to incorporate new subject expertise and user segments. In July 2021, the company acquired PrepLadder, a leading platform for postgraduate medical entrance exams like NEET PG and USMLE, enabling entry into the medical education vertical and integration of its 200,000-plus user base.[38] Earlier that year, Unacademy purchased Mastree, a K-12 focused edtech firm, to extend offerings into school-level tutoring and foundational learning, thereby broadening appeal to younger demographics.[39] Additional acquisitions, such as Kreatryx for advanced quantitative aptitude training and CodeChef for competitive programming in 2020, further strengthened domain-specific content and educator networks.[40] These acquisitions were strategically aimed at accelerating market penetration by absorbing established competitors' technologies, curricula, and audiences, allowing Unacademy to scale offerings without building from scratch. By integrating acquired entities' strengths—such as PrepLadder's medical faculty and Mastree's interactive K-12 modules—the platform enhanced its hybrid content ecosystem, supporting rapid user onboarding across verticals like medical, school education, and tech skills.[41] Complementing digital growth, Unacademy ventured into offline expansion in 2022 to establish a hybrid model, launching physical centers for in-person coaching amid shifting post-pandemic preferences for structured environments. In May 2022, it announced Unacademy Centres for live classes and doubt resolution, with initial operations in coaching hubs like Kota, Rajasthan, targeting exams such as JEE and NEET.[42] By June 2022, plans materialized for 15 centers across nine cities, including Delhi and Bengaluru, combining offline access to educators with online resources to cater to students seeking immersive preparation.[34] This push leveraged acquired expertise, such as GATE-focused content from integrations, to offer localized, high-touch learning while maintaining digital scalability.[43]Funding, Valuation, and Financial Performance
Investment History
Unacademy began attracting institutional investment in 2018 amid growing interest in India's online education sector. In July 2018, the company raised $21 million in a Series C round led by Nexus Venture Partners, with participation from Blume Ventures and others, marking a shift from seed-stage funding to scaling its platform for competitive exam preparation.[44] This was followed by a $50 million Series D round in June 2019, led by Steadview Capital and Nexus Venture Partners, which supported early expansion into live classes and content development.[44] Subsequent rounds accelerated during the 2020-2021 edtech funding surge. In March 2021, Unacademy secured $110 million in a Series E extension from SoftBank Vision Fund 2, focusing on acquisitions and product enhancements.[45] The company's largest infusion came in August 2021 with a $440 million Series H round led by Temasek Holdings, joined by General Atlantic, SoftBank Vision Fund 2, and Tiger Global Management, bringing cumulative funding from 2018 onward to over $600 million across these Series A through H efforts.[7][46]| Funding Round | Date | Amount Raised (USD) | Key Investors |
|---|---|---|---|
| Series C | July 2018 | $21 million | Nexus Venture Partners, Blume Ventures |
| Series D | June 2019 | $50 million | Steadview Capital, Nexus Venture Partners |
| Series E Extension | March 2021 | $110 million | SoftBank Vision Fund 2 |
| Series H | August 2021 | $440 million | Temasek Holdings (lead), General Atlantic, SoftBank Vision Fund 2, Tiger Global Management |
Valuation Peaks and Adjustments
Unacademy achieved its peak valuation of $3.44 billion in March 2022, following a $440 million Series H funding round led by Temasek, with participation from existing investors including SoftBank and Tiger Global.[49][2] This valuation surge mirrored broader edtech hype, driven by perceptions of scalable online models for exam preparation amid pandemic-induced remote learning trends.[50] By 2023 and into 2024, Unacademy's valuation stagnated without new equity infusions, reflecting a sector-wide contraction where funding for Indian edtech firms dropped to $283 million in 2023 from $2.4 billion in 2022.[51] No downrounds were publicly executed, unlike peer Byju's, whose valuation fell from a 2022 peak of $22 billion to under $5 billion by late 2023 amid creditor disputes and operational strains.[52] Unacademy's flat trajectory aligned with empirical signals of restraint, including multiple layoff rounds totaling over 1,000 employees since 2022 and internal mandates to prioritize profitability over expansion.[9] These adjustments stemmed from a post-pandemic recalibration, where investor optimism about indefinite online dominance clashed with resurgent demand for offline coaching in high-stakes domains like UPSC and JEE preparation, where physical interaction and localized institutes retained competitive edges.[53] Edtech multiples compressed broadly, with median revenue valuations dipping to 1.6x by late 2024, underscoring unsustainable growth projections detached from normalized enrollment patterns and rising acquisition costs for subscribers.[54][50]Revenue, Losses, and Cost Management
Unacademy's operating revenue peaked at ₹1,044 crore in FY23 before declining 5% to ₹988 crore in FY24, reflecting subdued growth in the edtech sector post-pandemic.[55][56] The company's primary revenue streams consist of subscription-based services, such as Unacademy Plus premium memberships that provide access to structured courses and live classes, accounting for the majority of income, alongside B2B enterprise deals and partnerships.[3][57] Net losses narrowed significantly from ₹1,678 crore in FY23 to ₹631 crore in FY24, a 62% reduction driven by aggressive cost controls rather than revenue expansion.[56][58]| Fiscal Year | Revenue (₹ crore) | Net Loss (₹ crore) |
|---|---|---|
| FY23 | 1,044 | 1,678 |
| FY24 | 988 | 631 |