Exclusive: Unacademy founders Munjal, Saini set to exit, shift focus to AirLearn
ETtech (L-R) Roman Saini and Gaurav Munjal, cofounders, Unacademy
Unacademy cofounder Gaurav Munjal is stepping down from his role as CEO and handing over the reins to Sumit Jain, amid a broader reset at the Bengaluru-based edtech company, a failed acquisition deal, and growing focus on its language learning app AirLearn, people familiar with the matter told ET.
Roman Saini, fellow cofounder, is also moving out of an active role at the firm, these people added on the condition of anonymity.
Munjal and Saini — along with Hemesh Singh, who left the startup in June 2024 — had cofounded Unacademy a decade ago as a YouTube channel.The departure of all three founders follows prolonged internal discussions between the company's shareholders and Munjal over Unacademy's future, amid struggles in its online business.Munjal's exit comes as Unacademy continues to pivot away from its once-dominant online test prep model to a more capital-intensive offline strategy centred on physical coaching centres—a move that has proven challenging in the post-pandemic edtech downturn.
Unacademy's board includes representatives from SoftBank and General Atlantic as well as Zeta founder Bhavin Turakhia and Udaan cofounder Sujeet Kumar besides Munjal and Saini.
Incoming CEO Jain, who is also on the board, joined Unacademy in 2020 when he sold his startup Opentalk to the edtech company. Jain had founded real estate listing portal Commonfloor and sold it to Quikr, an online classifieds operator, in 2016.'Over the past year or more, the Unacademy board has been in talks with Munjal about his potential exit as he is not inclined on running an offline coaching centre,' said one of the persons cited. 'Now it has come to the point where they are all aligned and discussing the final terms of the founders leaving... The two of them will be handed a cash payout, but will likely continue to hold their shares in the firm.'According to data platform Tracxn, Munjal and Saini each hold a 3.4% stake in Unacademy. Singh, the third cofounder, owns 2.2%. Nexus Venture Partners and Peak XV Partners (formerly Sequoia Capital India) own nearly 14% each, while SoftBank holds 12%, followed by General Atlantic with around 11%.Unacademy's founders and board members did not respond to queries.While the change has long been in the works, it also coincides with Munjal's growing focus on AirLearn, formerly known as Unacademy Languages, which is being developed as a standalone company. The shift has stirred a debate within the board, with some directors initially opposing the idea of raising fresh capital for a spinout while the core business remained under pressure.
Shifting goalposts AirLearn has held preliminary talks with potential investors and may see participation from some of Unacademy's existing shareholders, one person said.
ET had reported on December 4 last year that Unacademy was in talks with Kota-based Allen Career Institute for a potential acquisition, valuing the company at around $800 million, a steep cut of over 75% from its peak valuation of $3.4 billion. The deal talks failed over differences in valuation. Unacademy has raised a total $880 million in funding. It last raised $440 million in an August 2021 round led by Singapore's Temasek with participation from Tiger Global, Dragoneer Investment Group, Mirae Asset Venture and other existing investors.
Business under pressure Unacademy started life as a YouTube channel in 2015 after Munjal and Singh sold their earlier startup Flatchat to Commonfloor.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 at a Rs 35,000-40,000 crore valuation.As Unacademy's online business declined in the post-pandemic period, the company pivoted toward expanding its offline presence, leading to multiple layoffs and significant restructuring.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 Vivek Sinha resigned in August 2023. Chief financial officer Subramanian Ramachandran quit in October that year.Munjal's increasing involvement in AirLearn — a consumer-facing app positioned as a competitor to Duolingo — reflects a broader shift in focus, amid growing headwinds for Unacademy's core business. The slowdown in India's edtech sector has led to a funding crunch, consolidation, and the collapse of the largest player, Byju's, which went bankrupt.For FY24, Unacademy reported an operating revenue of Rs 840 crore, down 7% from the previous year. Its net loss narrowed to Rs 631 crore, a 62% reduction from FY23, helped by a series of cost-cutting measures and layoffs.At a recent townhall, Munjal told employees that over the past three years, Unacademy's cash burn had reduced from over Rs 1,000 crore annually to under Rs 200 crore. He said AirLearn was the 'fastest-growing product' within the group, hitting around 70,000 daily active users and an annualised revenue run rate of $2 million. AirLearn is housed under Unacademy Inc, the group's Delaware, US-incorporated entity. Munjal also said that the company had Rs 1,200 crore ($140-150 million) in the bank.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
32 minutes ago
- Mint
Raymond Realty eyes higher sales, launches in FY26
Bengaluru: Raymond Realty, which is scheduled to list on the stock exchanges on 1 July, is looking at faster growth through higher home sales and several project launches in 2025-26, said a top company executive. The real estate firm was demerged from Raymond Ltd on 1 May and will list as a standalone entity. Mumbai-based Raymond Realty clocked around ₹2,300 crore of sales in FY25, and is targeting at least 20% growth this year. It also expects a 20% return on capital employed. Also read: Gautam Singhania meets European royal Prince Albert II: Here's why they met, what they discussed & more By the end of FY26, it plans to launch six projects - two in suburban Thane, where Raymond owns about 100 acres, and four projects in different locations across Mumbai Metropolitan Region (MMR) - Wadala, Sion, Mahim and Bandra. The developer currently has six projects under execution. Raymond Realty's residential portfolio, combining projects under execution and the ones to be launched, has a gross development value (GDV) of ₹40,000 crore. Of this, projects worth ₹25,000 crore GDV would be in Thane alone. The remaining projects of ₹15,000 crore GDV are in MMR. 'In the next 3-4 years, we will double our sales and portfolio size. As a company, we are trying to solve for two things in the industry - quality of projects and timely delivery. We also want to focus on post delivery service, and have started our own facilities management arm," Raymond Realty chief executive Harmohan Sahni said in an interview. Also read: Centre links part of state capex loans to new reforms in land, and digitization The demerger will consolidate the group's real estate business under a single entity, which, going forward, will further unlock the firm's potential as a pure-play property development vertical. The company will sell at a broad price range of ₹20,000-65,000 per sq ft, and is not looking to sell below that, or in the uber luxury category. 'We can't go lower than ₹20,000-22,000 per sq ft. We will not dilute the brand, and it is not a price-sensitive market," he added. MMR, India's most valuable property market, stands as one of the leading contributors to pan-India launches and sales. Most of the projects Raymond Realty has signed are redevelopment projects. The newly signed projects, in Mahim and Wadala, are a Maharashtra Housing and Area Development Authority (Mhada) redevelopment and a slum redevelopment project respectively. Also read: Centre weighs easing conditions for interest-free capex loans to states 'We will continue to pursue an asset-light model by signing projects through the joint development route as it is capital efficient. We are a net debt-free company," Sahni said. Beyond Mumbai, the company is exploring project opportunities to enter the Pune property market. 'We are choosy about the deals we want to sign," he added. MMR among all the top cities witnessed the highest sales of around 155,335 units in 2024, almost the same as 2023. Pune followed with around 81,090 units sold. The two western markets together led residential sales last year, said Anarock Property Consultants.
Mint
an hour ago
- Mint
Gujarat Electronics Component Manufacturing Policy aims to reduce import dependency
Ahmedabad, Jun 22 (PTI) Incentives for projects approved by MeitY, quick disbursal of assistance and reducing import dependency by attracting over ₹ 35,000 crore in new investments are among the prominent features of the Gujarat Electronics Component Manufacturing Policy-2025. The policy, which aims to transform Gujarat into a global hub for electronics manufacturing, was unveiled by Chief Minister Bhupendra Patel on Sunday. The policy states that projects approved and supported by the Union Ministry of Electronics and Information Technology (MeitY) will be eligible for 100 per cent Central assistance when established in Gujarat. Projects approved by the MeitY will receive incentives from both the Centre and the state government through a single approval and incentive assistance will disbursed within 30 days, a government release stated. "This means MeitY-approved projects set up in the state will receive dual incentive benefits from the Central and Gujarat governments," it said. Aligned with the Union government's Electronics Component Manufacturing Scheme (ECMS), the policy ensures "a 100 per cent top-up on Central support while guaranteeing timely disbursement of assistance. "Once a project is approved under the ECMS from MeitY, it will automatically become eligible for the same grant-in-aid in Gujarat. The state government will disburse its incentive within 30 days of the Centre releasing the assistance," the release said. The policy aims to reduce dependence on imports and improve technological resilience by attracting over ₹ 35,000 crore in new investments. It aims to create substantial high-skilled employment opportunities within the state's electronics component manufacturing sector. The policy hopes to boost investment in key segments, such as multi-layer and HDI printed circuit boards, lithium-ion cells, SMD passive components, display and camera modules, electronic parts, and the additional machinery for their production. "The policy's core focus is to bridge the talent gap, promote innovation, and offer support for research and development initiatives, with the recognised Gujarat-based institutions being eligible for assistance of up to ₹ 12.5 crore to establish centres of excellence, finishing schools, or applied research laboratories," the release stated. The policy aims to establish Gujarat as a prominent player in global electronics supply chains by promoting the manufacturing of local electronic components and sub-assembly production, reducing import dependency, and boosting exports, which will drive product value growth in global electronics value chains (GVCs). The Government of India (GoI) guidelines mandate the submission of applications to avail of the benefits of this policy by July 31, 2025. All MeitY-approved projects operating in Gujarat will automatically become eligible for availing of the policy benefits along with developing or proposed projects for incentives. The government said only the units other than those receiving assistance under Gujarat Electronics Policy 2022-28 will be eligible for benefits under this policy, and those availing benefits under this policy will not qualify under the Gujarat Electronics Policy.
Time of India
an hour ago
- Time of India
Matter Motor plans new e-bikes positioned against 125cc–150cc rivals, eyes exports by 2026
Ahmedabad-based electric vehicle company Matter Motor is taking a unique approach in India's growing EV market by combining the familiar feel of petrol motorcycles with the electric technology. While electric scooters are becoming popular and roughly make up more than 6% of two-wheeler sales, electric motorcycles still haven't caught on in a big way. Battery-powered motorcycles account for less than 1% of the market. That's where Matter's Aera comes in. In a conversation with TOI Auto, Matter Motor founder Mohal Lalbhai spoke about the thought process behind India's first geared electric motorcycle . He discussed why the company chose to bring back the gear experience in its flagship Aera model, how the brand plans to tap into the mass market, and what makes their EV approach different. 'When we started back in 2019, we really wanted to come down to what it meant for a motorcycle user,' Lalbhai explained, highlighting that traditional motorcycle riders, especially in rural areas, need precise control over power and torque. 'The gearbox came up as one of the most essential things,' he added, noting that on uneven roads and off-road terrains, gearboxes give better traction and responsiveness. This approach contrasts sharply with the growing yet saturated electric scooter segment, which already stands at about 6% penetration in the two‑wheeler market. According to Lalbhai, 'the motorcycle segment is going to grow' as manufacturers begin launching electric bikes. He outlined Matter's expansive roadmap, confirming that the Aera (200cc equivalent) will be followed by 150cc and 125cc models, though the latter may use different technical platforms. 'And for us, the segments that we are seeing going to grow are between 125 to 200 cc,' Lalbhai noted. Pricing remains a common barrier in the EV space, but Matter has tackled this with a bold strategy: full vertical integration. The Aera is priced at Rs 1.94 lakh, ex-showroom, which Lalbhai characterizes as 'quite competitive' when compared to petrol motorcycles of similar displacement. He explained that by avoiding external IP licensing - 'we didn't want to keep paying money towards IP… the biggest leakages of margins' - Matter develops its own hardware, electronics, and software, keeping costs under control. In terms of manufacturing, Lalbhai confirmed that the Aera is '100 percent made in India' except for battery cells, magnets, and semiconductor chips. However, this local thrust includes precise component assembly, electronics integration, and final manufacturing. Matter also holds over 375 patent applications, with more than 70 grants, covering gearbox design, liquid cooling, proprietary charging systems, and more. As for sales and customer convenience, Matter is building a three-pronged network: service, sales, and spares. Importantly, the company is integrating predictive maintenance tools into the Aera. 'We actually get to see how the bike is performing… If something is going wrong, we would be able to proactively reach out to the customer,' Lalbhai shared. Looking beyond India, the company plans to export to Southeast Asia, Africa, and Eastern–Southern Europe next year, though India remains its focus for now. On expanding product lines, Lalbhai said they plan to explore delivery and cargo models around the 125cc equivalent segment in two to three years, aligning with growing demand for light commercial EVs. Accessories and apparel are also on the radar, with plans to support riders with protective gear and bike-specific clothing by early next year. But the immediate focus, Lalbhai said, remains on its core motorcycles and expanding the Aera's presence.
