SoftBank-backed edtech company Unacademy has announced a major strategic shift, confirming it will shut down all company-operated offline centers and move entirely to a franchise-based model. The transition is expected to be completed by April 2026.
CEO Gaurav Munjal shared that the move aligns with the company’s focus on improving efficiency and strengthening its core online education business. The decision comes soon after merger discussions with upGrad did not materialize, indicating Unacademy’s intent to continue independently.
Why Unacademy Is Changing Strategy
During the edtech boom of 2022 and 2023, several platforms expanded into physical learning centers to build hybrid models. However, managing offline infrastructure brought significant costs, including real estate, staffing, and operational overhead.
Unacademy’s shift to a franchise model transfers these expenses and risks to local partners. In return, the company continues to earn through brand licensing and revenue-sharing arrangements. This approach allows Unacademy to maintain offline presence without directly managing operations.
Focus on an Asset-Light Model
The franchise strategy reflects a broader move toward an asset-light business structure. By reducing capital expenditure, Unacademy can focus more on content development, technology, and scaling its digital platform.
This model is increasingly being adopted by companies looking to balance growth with financial discipline.
Improving Financial Performance
The company has already reported a significant reduction in its burn rate, which has dropped by more than 50 percent, from around ₹450 crore in 2024 to approximately ₹200 crore in 2025.
Key segments such as UPSC, NEET PG, and CAT have achieved contribution-level profitability. Additionally, subsidiaries like PrepLadder and Graphy are now operating with positive cash flow, indicating improving overall financial health.
What This Means for the EdTech Sector
Unacademy’s decision highlights the challenges of scaling hybrid education models that combine online and offline operations. While physical centers offer reach and engagement, they also introduce high fixed costs.
The shift suggests that the future of edtech may lean toward a combination of strong online platforms supported by franchise-led offline expansion rather than company-owned centers.
With its renewed focus and improving financial metrics, Unacademy appears to be positioning itself for a more sustainable growth phase while continuing to compete in India’s evolving education market.
Key Takeaway
Unacademy’s move reflects a clear shift toward sustainable growth in edtech. By exiting asset-heavy offline operations and adopting a franchise model, the company is prioritizing efficiency, scalability, and long-term profitability.
