Unacademy CEO Dismisses $800M Allen Acquisition Rumor
Deal News | Dec 09, 2024 | EIN
Unacademy's CEO Gaurav Munjal has strongly refuted rumors about an $800 million acquisition by Allen Career Institute. The rumors suggested a deal that would significantly undervalue Unacademy's prior valuation of $3.4 billion from 2021. Munjal took to LinkedIn to address these claims, calling them unfounded and reaffirming Unacademy's commitment to long-term growth. He outlined their current financial health, which includes a 30% increase in offline operations, an improvement in unit economics, and a reduction in cash burn by 50%. With $170 million in reserves and no debt, Munjal claims the company has a sustainability runway of over four years. Additionally, Alakh Pandey, CEO of Physics Wallah, reacted to Munjal's post, applauding the renewed spirit of competition. Pandey himself had previously turned down Unacademy's acquisition offer and steered Physics Wallah to become a unicorn.
Sectors
- EdTech
- Educational Services
Geography
- India – Both Unacademy and Physics Wallah operate within India's education sector.
Industry
- EdTech – The article focuses on Unacademy, an edtech company, and its industry dynamics.
- Educational Services – Relates to Unacademy's expansion and unit economics in education services.
Financials
- $800 million – Rumored acquisition price for Unacademy by Allen Career Institute.
- $3.4 billion – Unacademy's valuation in 2021.
- 75 crore – Acquisition offer made by Unacademy to Physics Wallah.
- $170 million – Unacademy's cash reserves as stated by CEO Gaurav Munjal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Unacademy | Subject of Rumor | Company | An edtech giant rumored to be potentially acquired by Allen Career Institute. |
| Allen Career Institute | Alleged Buyer | Company | The institution rumored to be in talks for acquiring Unacademy, which was dismissed. |
| Gaurav Munjal | CEO of Unacademy | Person | Co-founder and CEO of Unacademy, publicly refuted acquisition rumors. |
| Alakh Pandey | CEO of Physics Wallah | Person | Reacted to Munjal's posts, CEO of Physics Wallah, a competitor in the edtech field. |
| Physics Wallah | Competitor | Company | A competitor edtech company that turned down an acquisition offer from Unacademy. |