Unacademy cofounders Gaurav Munjal and Roman Saini are dedicating “substantial time and resources” to the edtech group’s new language learning platform AirLearn, while Sumit Jain is “channelling efforts” into strengthening the company’s offline business, Munjal wrote in an email to employees on Wednesday.
He sent the email to Unacademy’s staff following ET’s newsbreak on Wednesday morning that the two founders (Munjal and Saini) are stepping down from their executive roles to focus on AirLearn. Jain is expected to take over as the company’s CEO, succeeding Munjal.
Munjal said the increased involvement by Saini and him on AirLearn, as well as Jain’s focus on the company’s offline business, are “strategic moves aligned with our long-term goals”.
For more than a year, the Unacademy board had been in discussions with Munjal about his potential exit, given his lack of interest in running an offline coaching business. The process has now reached a stage where all parties are aligned, and the final terms of the founders' departure are being negotiated. Both Munjal and Saini are expected to receive a cash payout while likely retaining their equity in the company.
According to people in the know, the founders' planned exit from the company has triggered talks of impending layoffs at Unacademy, prompting Munjal to send an email to staff to address and dispel the concerns.
“...I want to be clear – there’s no cause for concern. Unacademy is performing exceptionally well. We’ve successfully completed appraisals across the board, and I’m happy to share that our burn rate is significantly reduced. Our balance sheet remains robust and healthy,” Munjal wrote in his email.
AirLearn has held preliminary talks with potential investors for a funding round which may see participation from some Unacademy’s existing shareholders. However, the move sparked debate within the Bengaluru-based company’s board, as some directors were initially against raising new capital for a spinout, while the core business continued to face challenges.
The SoftBank-backed Unacademy, has raised a total of $880 million in capital. It last picked up $440 million in August 2021 led by Singapore’s Temasek with participation from Tiger Global, Dragoneer Investment Group, Mirae Asset Venture and other existing investors.
Post-Covid struggles
Munjal’s deeper involvement in AirLearn — a consumer-facing app aimed at competing with Duolingo — signals a broader pivot, with Unacademy’s core business facing mounting challenges. India’s edtech sector has been hit by a sharp slowdown, leading to a funding squeeze, industry consolidation, and the insolvency of its biggest player, Byju’s.
In the test-prep segment, it competes with the likes of Byju’s-owned Aakash Institute and WestBridge Capital-backed PhysicsWallah, which has confidentially filed draft papers for an initial public offering (IPO) at a Rs 35,000-40,000 crore valuation.
Munjal’s reluctance to lead the physical coaching centre model contributed to senior management churn, adding to the uncertainty over the company’s future, ET reported December 4.
Chief operating officer (COO) Vivek Sinha resigned in August 2023. Chief financial officer (CFO) Subramanian Ramachandran quit in October that year.
He sent the email to Unacademy’s staff following ET’s newsbreak on Wednesday morning that the two founders (Munjal and Saini) are stepping down from their executive roles to focus on AirLearn. Jain is expected to take over as the company’s CEO, succeeding Munjal.
Munjal said the increased involvement by Saini and him on AirLearn, as well as Jain’s focus on the company’s offline business, are “strategic moves aligned with our long-term goals”.
For more than a year, the Unacademy board had been in discussions with Munjal about his potential exit, given his lack of interest in running an offline coaching business. The process has now reached a stage where all parties are aligned, and the final terms of the founders' departure are being negotiated. Both Munjal and Saini are expected to receive a cash payout while likely retaining their equity in the company.
According to people in the know, the founders' planned exit from the company has triggered talks of impending layoffs at Unacademy, prompting Munjal to send an email to staff to address and dispel the concerns.
“...I want to be clear – there’s no cause for concern. Unacademy is performing exceptionally well. We’ve successfully completed appraisals across the board, and I’m happy to share that our burn rate is significantly reduced. Our balance sheet remains robust and healthy,” Munjal wrote in his email.
AirLearn has held preliminary talks with potential investors for a funding round which may see participation from some Unacademy’s existing shareholders. However, the move sparked debate within the Bengaluru-based company’s board, as some directors were initially against raising new capital for a spinout, while the core business continued to face challenges.
The SoftBank-backed Unacademy, has raised a total of $880 million in capital. It last picked up $440 million in August 2021 led by Singapore’s Temasek with participation from Tiger Global, Dragoneer Investment Group, Mirae Asset Venture and other existing investors.
Post-Covid struggles
Munjal’s deeper involvement in AirLearn — a consumer-facing app aimed at competing with Duolingo — signals a broader pivot, with Unacademy’s core business facing mounting challenges. India’s edtech sector has been hit by a sharp slowdown, leading to a funding squeeze, industry consolidation, and the insolvency of its biggest player, Byju’s.
In the test-prep segment, it competes with the likes of Byju’s-owned Aakash Institute and WestBridge Capital-backed PhysicsWallah, which has confidentially filed draft papers for an initial public offering (IPO) at a Rs 35,000-40,000 crore valuation.
Munjal’s reluctance to lead the physical coaching centre model contributed to senior management churn, adding to the uncertainty over the company’s future, ET reported December 4.
Chief operating officer (COO) Vivek Sinha resigned in August 2023. Chief financial officer (CFO) Subramanian Ramachandran quit in October that year.
You may also like
M1 traffic LIVE: Early morning mysery for motorists as they face long queues
Cong had option to attack LeT HQ post 26/11, Sonia Gandhi and Rahul Gandhi chose inaction: BJP
US Congressmen Raja Krishnamoorthi Slams Donald Trump Administration's Freeze On Student Visas, Calls Move A Strategic Blunder
UPSC ESE Admit Card: UPSC Engineering Service Preliminary Exam Admit Card released; Exam is on 8th June..
Now which new crisis is going to come on earth? This prophecy of Baba Venga is frightening, its effect will be seen all over the world
