Unacademy to Shift from Company-Run Centres to Franchise Model Post upGrad Deal Collapse

As per Moneycontrol reports, Edtech platform Unacademy has announced plans to discontinue direct operations of its offline centres and transition to a franchise-led model.  

This decision follows the breakdown of acquisition discussions with rival upGrad. The shift is aimed at restructuring operations and reducing costs. 

Unacademy to Exit Offline Operations After upGrad Deal Ends 

In an internal communication, co-founder Gaurav Munjal informed employees that Unacademy would exit all company-run offline centres. These centres will be handed over to local franchise partners responsible for daily operations.  

Unacademy, however, will continue to provide academic content, technology platforms, and curriculum support. Munjal cited the need for cost efficiency and operational focus as core reasons behind the shift. 

According to Munjal, the franchise model allows the platform to remain asset-light while strengthening its core online offerings. The transition is expected to conclude by April, after which Unacademy will no longer directly manage offline locations. 

Operational Restructure and Cost Rationalisation 

Unacademy has undergone a significant reset in its spending. In calendar year 2024, the test-prep division's cost was reduced from ₹450 crore to ₹200 crore. The cuts were made by discontinuing underutilised projects and focusing on profitable ones. 

Several verticals including UPSC, NEET PG, and CAT are now contribution-margin positive. PrepLadder and Graphy, both subsidiaries, achieved positive cash flow across the year. Meanwhile, Airlearn grew its annual recurring revenue from $200,000 to $3 million within 12 months. 

Read More: Atomgrid Secures $7 Million in Funding to Scale Speciality Chemical Operations! 

Leadership and Strategic Realignment 

During this transition phase, co-founders Gaurav Munjal and Roman Saini moved away from day-to-day roles. Sumit Jain was appointed to head the core test-prep unit. These changes reflect the company's push to streamline operational focus following the failed acquisition talks. 

Financial Position and Strategic Direction 

Unacademy currently holds ₹1,100 crore in cash reserves. With the revised structure in place, the company is aiming to streamline expenditures while emphasising its digital strengths. According to Munjal, the new direction marks a return to their original positioning as an online-first education platform, as established in 2015. 

Conclusion 

Unacademy has opted for a franchise model for its offline centres, focusing on capital efficiency and core competencies in online education. The change comes in response to restructuring efforts after failed acquisition talks with upGrad. 

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