Unacademy Launches Rs 50 Crore ESOP Buyback Programme

Unacademy has announced a Rs 50 crore ESOP buyback programme to provide liquidity for its workforce, as reported by the company’s co-founder, Gaurav Munjal. Sharing the news on social media platform X, Munjal mentioned that eight employees are anticipated to earn over Rs 1 crore each from the buyback initiative. Additionally, 17 employees are set to receive more than Rs 50 lakh, while 38 employees may gain in excess of Rs 10 lakh.

Liquidity for Employees

Munjal expressed gratitude towards the board for establishing a cash pool for employees, despite acknowledging that the company’s valuation is considerably lower than during their last funding round. He stated that the company would connect with eligible employees in the upcoming weeks for participation in the buyback programme.

Clarifications on ESOP Terms

Recently, Munjal had provided clarifications regarding the ESOP exercise terms and valuation at Unacademy. The company has instituted a one-time 30-day window for former employees to exercise their vested stock options. However, he cautioned that the current valuation falls short compared to previous investment rounds, and preference shareholders are prioritised over equity holders.

Edtech Sector Challenges and Strategic Reset

Unacademy is experiencing a strategic overhaul as the edtech industry faces challenges following the post-pandemic surge. The company has unveiled plans to transition from operating its own offline learning centres to adopting a franchise-based model, aiming to reduce costs and enhance unit economics.

Exploring Consolidation Opportunities

Moreover, Unacademy is investigating potential consolidation avenues. Recent negotiations between Unacademy and upGrad regarding a possible acquisition were halted as both parties could not reach an agreement concerning valuation.