A Company Once Known as Unacademy Seeks Merger Amidst Layoffs and Industry Turbulence
Posted by admin on 2024-07-03 |
After the debacle at Byju’s, Unacademy, another prominent Edtech startup, is now facing significant challenges. Once a thriving company, Unacademy is currently seeking a respectable exit strategy.
The Bengaluru-based Edtech company, led by tech entrepreneur Gaurav Munjal and valued at $3.4 billion, has approached several education companies for potential mergers or outright acquisitions, as reported by sources familiar with the situation.
Seeking Potential Mergers
Unacademy has reached out to a variety of educational organizations, including the coaching institute Allen, the Edtech firm Physics Wallah, the education services company K12 Techno, and numerous other large education coaching companies.
Last month, Entrackr was the first to report on the merger discussions between Unacademy and K12 Techno. These efforts indicate Unacademy's proactive search for a viable path forward amidst its current difficulties.
Layoffs and Departures
The company is experiencing turbulence, with recent reports indicating that Unacademy has laid off 250 employees across multiple departments. This round of layoffs comes shortly after the departure of its co-founder and CTO, Hemesh Singh.
According to The Economic Times, around 150 employees from the sales department, who failed to meet their targets, were affected in this fresh round of layoffs. The remaining 100 employees came from various other departments within the company. While Unacademy has confirmed this restructuring effort, it has not disclosed the exact number of employees impacted.
Company Statement
In a statement, Unacademy explained, “As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted.”
This restructuring marks the third round of layoffs at Unacademy. Previously, the company reduced its workforce by roughly 12% (around 380 employees) in March 2023, and in April 2022, it downsized by approximately 1,000 employees, including both contract and full-time staff.
Industry-Wide Trend
These layoffs are part of a broader trend affecting the Indian Edtech industry. In 2022, several major players, including Byju's and Vedantu, also experienced significant workforce reductions as the post-pandemic surge in online learning began to decline. Unacademy’s recent struggles highlight the ongoing challenges faced by Edtech companies in adapting to the changing educational landscape.
