Unacademy Launches ₹50 Crore ESOP Buyback to Provide Employee Liquidity

Unacademy announced on February 27, 2026, that it will use a dedicated cash pool to repurchase employee stock options worth ₹50 crore, aiming to give current and former staff a direct liquidity route. 

Details of the ₹50 crore ESOP Buyback 

The board approved a cash reserve specifically for the buyback, despite the valuation being lower than the company’s last private funding round. The process will be rolled out over the coming weeks, with the firm contacting eligible participants individually. 

Payout Structure for Eligible Employees 

According to the co‑founder, eight employees will receive more than ₹1 crore each, 17 will obtain over ₹50 lakh and 38 will be paid more than ₹10 lakh. These amounts reflect the varied size of vested options held by staff members. 

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Context Behind the Buyback Initiative 

The buyback follows a broader restructuring that allowed former employees to convert vested options into shares at a reduced price. Unacademy has been trimming costs, focusing on its core test‑prep business, and shifting from directly operated offline centres to a franchise‑led model to lower capital intensity. 

Implications for Employee Ownership 

By offering a cash realisation option, Unacademy provides a tangible exit for staff at a time when secondary market opportunities are limited. The move aligns with a trend among late‑stage startups to use structured buybacks as a means of retaining talent while managing cash flow. 

Conclusion 

Unacademy’s ₹50 crore ESOP buyback creates a liquidity channel for a segment of its workforce, with payouts ranging from ₹10 lakh to over ₹1 crore. The initiative is part of the company’s ongoing effort to stabilise operations and support employee financial needs. 

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