Unacademy: Navigating Growth and Challenges in India’s EdTech Revolution

1. Introduction

Unacademy is a leading Indian education-technology (EdTech) company that offers an

online learning platform for students and professionals. Founded in 2015 by Gaurav Munjal
(along with co-founders Hemesh Singh and Roman Saini) after initially starting as a YouTube
channel, Unacademy has grown into one of India’s largest learning platforms .
Headquartered in Bangalore, the company connects millions of learners with thousands of
educators through live classes, video lessons, and interactive courses on its app and
website. Unacademy’s primary focus has been preparation for competitive examinations –
from college entrance tests (like IIT-JEE, NEET) to civil service and other professional
exams – though it has expanded into K-12 tutoring and skill development in recent years.

Unacademy operates in India’s booming EdTech sector, which leverages technology to

deliver educational content online. The past decade saw rapid evolution in this sector as
online tutorials, digital assessments, and e-learning platforms began to complement or
replace traditional classroom methods . In India – a country with a vast student population
and historically limited access to quality coaching in remote areas – EdTech companies like
BYJU’S, Unacademy, and Vedantu seized the opportunity to democratize learning . The
COVID-19 pandemic in 2020 further accelerated adoption of online education, making it a
necessity during lockdowns. Students across age groups turned to online platforms to
continue their studies, propelling EdTech usage to new heights . Unacademy benefited
immensely from this trend, experiencing a surge in users and securing major funding. By late
2020, after a $150 million investment from SoftBank’s Vision Fund, Unacademy achieved
unicorn status with a valuation over $1.4 billion .

Today, Unacademy boasts a strong brand in test preparation, a community of over 50,000
educators, and a reported 50 million+ learners (registered users) on its platform . It offers
courses for dozens of high-stakes exams, combining live interactive classes with recorded
lessons and practice quizzes. The platform’s features – such as real-time polls, doubt
clearing, and gamified contests – and its tagline “Let’s Crack It” have resonated with India’s
ambitious student base. Unacademy’s scale and reach position it as a major player, second
only to BYJU’S in the Indian online education market in many aspects. However, as the
EdTech landscape evolves post-pandemic, Unacademy faces significant strategic decisions.
Intense competition (from rivals like BYJU’S, Vedantu, and newer entrant PhysicsWallah), an
urgent need to achieve profitability, and changing user preferences (return to offline learning)
present new challenges. This case study examines Unacademy’s journey, analyzes the
environment it operates in, and evaluates strategic options for its next phase of growth.

2. Problem Statement

Unacademy finds itself at a strategic crossroads in 2025. After a period of breakneck growth
fueled by pandemic-era demand and abundant venture capital, the company is now
grappling with a more normalized market and mounting pressure for sustainable finances.
The key problem is how Unacademy should navigate the transition from rapid expansion to
long-term viability in a post-pandemic EdTech sector that has become fiercely competitive
and financially cautious. Specifically, Unacademy’s leadership must decide on the strategic
direction that will address several critical questions:

• Balancing Growth and Profitability: With cumulative losses running high

(₹2,848 crore net loss in FY2022) , how can Unacademy achieve profitability without stifling
growth? What cost structures and business model changes are needed to “survive the
winter” of funding slowdown ?

• Competitive Strategy: How should Unacademy defend and expand its market
position against major competitors like BYJU’S (the diversified market leader) and Vedantu,
as well as agile newcomers like PhysicsWallah? This involves deciding whether to double
down on its core strength (online test prep) or diversify.

• Adapting to Market Shifts: With students returning to physical classrooms and

hybrid models gaining traction, how should Unacademy adjust its offerings? The company
ventured into offline coaching centers in 2022 , but offline expansion is costly and pits it
against entrenched traditional institutes. Should Unacademy lean more into offline/hybrid
models or refocus on online delivery?

• Future Growth Opportunities: What new avenues should Unacademy explore

for growth – international markets, new segments (K-12, upskilling, B2B solutions), or
premium services? Each option carries opportunities and risks that need evaluation.

In essence, Unacademy must formulate a strategic plan to sustain its mission of

democratizing education while ensuring financial sustainability and competitive
differentiation. The decisions made at this juncture will determine whether Unacademy
solidifies its position as an EdTech leader or gets overshadowed in an increasingly crowded
space. The following analysis delves into the external environment and internal capabilities
to inform these strategic choices.

3. Analysis

3.1 Sector Analysis – EdTech Industry Landscape

Overview: The EdTech sector in which Unacademy operates has grown dramatically in India
over the last few years. India today is one of the world’s largest and fastest-growing EdTech
markets, thanks to a confluence of favorable factors. To systematically analyze the external
environment, we apply PESTLE analysis (Political, Economic, Social, Technological, Legal,
Environmental) and Porter’s Five Forces to the EdTech industry.

PESTLE Analysis of EdTech in India

• Political Factors: The Indian government’s policies have largely been

supportive of digital education. Initiatives like the Digital India programme (launched 2015
with $15 billion budget) aim to create a “digitally empowered society” , boosting internet
infrastructure and e-learning adoption. The National Education Policy (NEP) 2020 explicitly
encourages integration of online platforms into mainstream education and life-long learning.
NEP 2020 called for achieving 50% Gross Enrolment Ratio by 2035 and emphasizes
alternative learning modes including EdTech . Government bodies (UGC, AICTE, etc.) have
started to lay out regulatory frameworks for online education to ensure quality standards .
Overall political stability and central government initiatives (e.g., Startup India) have
catalyzed growth; notably, public and private investments in EdTech reached ~$4 billion in
2020 amid the COVID stimulus for digital learning . Additionally, several state governments
have partnered with EdTech firms or launched e-learning programs, signaling a collaborative
stance. Unacademy itself signed memorandums with some state governments to help
meritorious students prepare for exams using its platform .

• Economic Factors: The economic environment has been a double-edged

sword for EdTech. On one hand, rising incomes and a burgeoning middle class in India
(projected ~600 million middle-class by 2030) have increased willingness to spend on quality
education . The online education market was valued at ~$2 billion in 2020 and was expected
to grow at ~39% CAGR through 2026 in early estimates . Indeed, from 2020–2021, the
sector saw record venture capital funding and startup valuations. India’s EdTech industry
attracted massive investments, making it the third most funded globally (after the US and
China) . By 2021, annual EdTech funding hit a peak – $5.8 billion in 2021 alone – as the
pandemic fueled demand. However, the latter part of the period has seen economic
headwinds. A “funding winter” set in by 2022 : EdTech funding in India fell ~87% from 2021
to 2022 (down to ~$2.0 billion in 2022) , and further to only a few hundred million in 2023 .
This sharp decline reflects global economic slowdown, investor caution towards edtech, and
the end of pandemic-driven growth spurt. Consumer spending on education also temporarily
dipped during economic shocks like the COVID lockdowns , although it rebounded as online
options became necessity. For companies like Unacademy, the economic trend means a
pivot from growth-at-all-costs to efficient, scalable operations. On the positive side, the
long-term market outlook remains strong: India’s EdTech sector is projected to reach $29–30
billion by 2030 (up from ~$7.5B in 2024), contributing an estimated 0.4% to GDP by 2029 .
The secular drivers (huge learner base and demand for skills) suggest substantial headroom
for growth if firms can weather short-term turbulence.

• Social Factors: Social and demographic forces strongly favor EdTech in India.
First, India has a vast young population – over 50% of Indians are under age 30 – and the
largest school-age population globally (~250 million in K-12) . Culturally, there is high
emphasis on education as a path to advancement, leading families to invest heavily in
tutoring and exam preparation. This creates fertile demand for services like Unacademy that
promise better exam outcomes. The pandemic significantly shifted public perception of
online learning: initially, there was skepticism about online quality vs. classroom, but with
COVID-19 forcing schools and coaching centers to close in 2020, online education gained
acceptance across demographics . By 2021, online learning had become mainstream for
students from primary school to college entrance exam aspirants. A survey in 2022 indicated
that even traditional students were increasingly comfortable with blended learning models .
The acceptance of EdTech is also boosted by success stories of top exam rankers using
these platforms, which builds trust among aspirants. However, as normalcy returns, many
students have resumed offline classes for the human touch and discipline it offers –
indicating some persistent preference for in-person learning especially for younger students.
Another social factor is the geographical education gap in India: students in smaller towns
often lack access to quality coaching. EdTech bridges that gap by bringing star educators to
their screens. Unacademy’s value proposition “Education for All” directly taps into this need,
attracting millions of learners from Tier-2 and Tier-3 cities who otherwise had limited
resources. Additionally, the rise of lifelong learning and upskilling trends among working
professionals (partly due to rapid industry changes) has expanded EdTech beyond just
school and college students . Society’s growing comfort with digital platforms and the
aspirational mindset of India’s youth (e.g., craving government jobs, IIT admissions, etc.)
provide a strong user base for Unacademy and peers.

• Technological Factors: Technology is the backbone of EdTech, and rapid tech

advancement has enabled platforms like Unacademy to scale. Internet penetration in India
has grown exponentially – as of 2022, over 700 million Indians are active internet users ,
thanks in part to inexpensive mobile data (India has one of the world’s lowest data costs)
and telecom expansions (e.g., Jio’s 4G rollout). Crucially, smartphone adoption has made
online learning accessible: more than 70% of Unacademy’s users access its platform via
mobile devices, and the Unacademy learning app has over 50 million downloads on Android
. This mobile-first usage is a key enabler, letting students learn anytime/anywhere. The
EdTech sector also leverages emerging technologies – data analytics and AI – to enhance
learning outcomes. Unacademy and its competitors use data analytics to personalize
content recommendations and track student progress, which reportedly improved user
satisfaction and retention on Unacademy (e.g., 60% retention in 2022 vs 40% in 2020) . The
platform has experimented with AI/ML-driven features like adaptive quizzes and automated
test grading, with ~20% of courses utilizing AI-based assessments in 2023 . These
technologies allow scalable personalization, a significant improvement over one-size
classroom teaching. Furthermore, tech trends like live streaming at scale, cloud
infrastructure, and content delivery networks have made it feasible for hundreds of
thousands of students to concurrently attend live classes and interact in real time.
Unacademy, for instance, routinely hosts live lectures and all-India mock tests with tens of
thousands of attendees without major technical glitches. The company has invested in
robust back-end systems to handle such scale, as well as cybersecurity measures to protect
user data (spending ~$5 million on cybersecurity and achieving 98% data compliance) .
Looking ahead, new innovations – such as virtual reality (VR) classrooms, gamification, and
generative AI tutors – present opportunities to further enrich online learning. Indian EdTech
firms are exploring these: the use of gamified elements and AI-driven doubt solving bots is
on the rise . Unacademy could leverage such tech to differentiate its pedagogy. However,
rapid tech evolution also means EdTech companies must continuously update their
platforms, which requires significant R&D investment and skilled engineering talent.
Technology is both a growth driver and a necessary ongoing investment in this industry.

• Legal Factors: As a relatively new sector, EdTech in India has been lightly
regulated, but this is changing gradually. There is no dedicated regulator for EdTech yet, but
existing education laws and IT laws apply. The government has expressed concerns about
misleading marketing and student exploitation by some EdTech firms. In response, in early
2022 the industry formed a self-regulatory body under IAMAI (Internet and Mobile
Association of India) – the India EdTech Consortium – of which Unacademy is a founding
member . Members adhere to a code of conduct on advertising ethics, refunds, and content
quality. Additionally, the Ministry of Education issued advisories cautioning consumers about
free vs. paid services, pushing companies to be more transparent. Intellectual property is
another legal aspect: EdTech platforms host vast amounts of content (video lectures, notes,
question banks). Ensuring no copyright infringement and handling educator-created content
rights can be challenging. Unacademy, for example, faced issues of content plagiarism and
had to ensure educators only upload original material . Data protection laws are also
relevant – India’s IT Act and upcoming Personal Data Protection law require EdTech
companies to secure users’ personal data . In 2020, Unacademy suffered a data breach
where ~22 million user records were leaked by hackers , highlighting the legal and
reputational risks around cybersecurity. Since then, Unacademy has bolstered compliance
measures. Lastly, education sector regulations (by bodies like UGC/AICTE) influence
EdTech: for instance, rules now allow accredited institutions to offer certain degrees online,
which could either pose competition or open partnership opportunities for EdTech firms.
Overall, while the legal environment still has ambiguities (EdTech exists in a grey area
between formal and informal education), the trend is toward greater scrutiny. Companies that
preemptively adopt best practices in consumer protection, advertising truthfulness, and
content standards (as Unacademy has attempted via self-regulation) are likely to fare better
as formal regulations eventually solidify.

• Environmental Factors: Environmental considerations are less central in

EdTech compared to other industries, but there are a few notable points. The shift to online
learning during COVID contributed to a reduced carbon footprint by minimizing physical
travel – millions of students attending classes from home meant fewer commutes and less
energy usage in brick-and-mortar facilities . In that sense, Unacademy and its peers
indirectly support environmental sustainability by enabling remote learning. Additionally,
digital materials reduce reliance on paper (e-books and online notes instead of printed
books), which has a positive environmental impact. However, there are also energy costs
associated with data centers and increased screen time. As ESG (Environmental, Social,
Governance) criteria gain importance for investors, EdTech firms might eventually be
evaluated on digital carbon footprints. Another environmental factor was the pandemic itself
(a health environmental crisis) which dramatically affected EdTech demand. Companies had
to be agile in responding to such external shocks – Unacademy, for example, offered free
live classes for schools and colleges during the pandemic as a goodwill measure, aligning
with a social responsibility stance. In summary, while environment is not a primary driver in
EdTech strategy, the sector does contribute positively by reducing certain resource usages,
and companies are expected to be conscientious corporate citizens in this regard.

Table 1: India EdTech Market Overview (Key Indicators)

Indicator (2024) Value/Status Source

Market size – India EdTech ~$7.5 billion

Projected market size ~$29 billion (CAGR ~25%

(2030) from 2024–30)
 Number of EdTech startups 17,000+ companies (7
(2024) unicorns)

Total funding raised (to ~$14 billion (cumulative in

2024) India)

VC funding in 2021 (peak ~$5.8 billion (India EdTech

year) sector)

VC funding in 2022 ~$2.0 billion (India EdTech

sector)

VC funding in 2023 ~$0.3 billion (India EdTech

sector)

Internet users in India ~700 million active users

(2022)

Smartphone penetration ~750+ million connections; (Telecom reports)

>50% population

Key market trend Hybrid learning (online +

offline) on the rise; focus on
profitability

(Sources: IAMAI-Grant Thornton report, Tracxn/Fintrackr data, Nielsen, etc.)

As Table 1 indicates, the Indian EdTech sector’s fundamentals are strong (huge user base
and growth potential) despite recent corrections. Having examined the PESTLE factors, we
now analyze the competitive dynamics via Porter’s Five Forces, which shed light on industry
attractiveness and the pressures Unacademy faces.

Porter’s Five Forces Analysis – EdTech Industry (India)

1. Rivalry Among Existing Competitors – High. The competitive rivalry in Indian

EdTech is intense, with several well-funded players vying for market share. BYJU’S,
Unacademy, Vedantu, and PhysicsWallah are among the prominent names, each with
overlapping offerings. BYJU’S is the largest (150+ million learners) and has diversified into
many segments (K-12, test prep, upskilling, international) . Unacademy has been a strong
challenger in the test prep and competitive exam space. Vedantu focuses on live tutoring for
school students, and PhysicsWallah emerged in 2020 as a low-cost alternative specifically
for engineering/medical exam prep – it quickly gained popularity and even turned profitable .
In addition, there are players like upGrad and Simplilearn (focusing on higher education and
professional courses), and numerous smaller startups tackling niches (coding for kids,
tutoring marketplaces, etc.). This multitude of competitors leads to a high degree of rivalry,
manifesting in aggressive marketing, rapid innovation, and in some cases price wars or
heavy discounting on course fees. During the pandemic boom, companies spent lavishly on
advertising (for example, Unacademy sponsored the IPL cricket tournament in 2020-21 to
boost its brand) , and poached star teachers from each other by offering lucrative pay
packages. Now, as the market growth has slowed, rivals are competing to retain students
and convert free users to paid subscribers. The exit of a couple of smaller players (like Toppr
being acquired and integrated into BYJU’S) has slightly consolidated the field, but rivalry
remains high between the top firms. The product differentiation in core offerings is moderate
– many provide similar live classes and recorded libraries – which intensifies competition on
other fronts like content quality, teacher talent, and price. Overall, the competitive battle for
user engagement and wallet share in EdTech is fierce, indicating strong rivalry.

2. Threat of New Entrants – Moderate. The EdTech industry saw an influx of

new entrants during the boom period, as barriers to entry appeared relatively low – basic
online learning platforms can be launched with modest capital and open-source tech.
Indeed, India has 17,000+ EdTech companies (most of them small startups) . However, to
scale up and compete with established players like Unacademy is much harder. Several
factors raise entry barriers: brand and reputation matter greatly in education (parents and
students trust known brands for something as critical as exam prep), and new entrants
struggle to build that trust. Top EdTech firms have secured exclusive content and star
educators under contract, making it difficult for newcomers to offer comparable quality or
variety of courses. There is also an element of network effects – e.g., a platform with a large
community of learners and educators becomes more valuable (forums, peer learning,
word-of-mouth). Established players benefit from these effects, which new entrants lack.
Additionally, large incumbents have war chests from past funding; while funding has dried up
for new startups post-2022, companies like Unacademy still have significant capital reserves
(Unacademy had ₹2,800 crore cash as of mid-2022) to invest in content and technology.
That said, the threat is not negligible: niche entrants can and do appear – e.g.,
PhysicsWallah’s meteoric rise showed that a focused newcomer with a unique model
(ultra-low pricing and a charismatic founder-teacher) can break in . Also, traditional
education companies and prestigious universities could enter online learning – for instance,
offline coaching institutes (like Allen, Aakash) have launched their own online offerings or
been acquired by EdTech firms. Global players (Coursera, Khan Academy, etc.) also
indirectly compete by attracting learners, though they target somewhat different segments.
On balance, new entrants can still emerge, especially targeting untapped niches or local
language content, but achieving scale to threaten giants is difficult. Thus, the threat of new
entrants is moderate, tempered by brand loyalty and resource advantages held by current
leaders.
 3. Bargaining Power of Buyers (Students) – Moderate to High. The “buyers” in
EdTech are essentially the students and their parents (for school-going users). Individual
students typically have limited bargaining power against a large platform – they either pay
the listed subscription fee or choose not to enroll. There is no direct negotiation on price per
user. However, collectively, buyers have considerable power because switching costs are
low in online education. If one platform raises prices or fails to deliver quality, users can
easily migrate to a competitor or access abundant free content on YouTube and other free
educational sites. There are numerous substitute resources for most exam preparations
(free videos, PDFs, pirated materials, etc.), which puts pressure on EdTech providers to
keep prices reasonable and quality high. Students are also quite price-sensitive in India; a
significant portion come from middle-class or lower-income backgrounds that seek value for
money or rely on scholarships. This sensitivity means EdTech firms cannot price too
premium for mass-market courses without losing volume to cheaper alternatives (as seen by
PhysicsWallah attracting students with courses costing a fraction of Unacademy’s prices).
Moreover, in the presence of multiple competitors, customers often compare offerings
(features, success records, teacher reputation) before buying, effectively giving them
bargaining leverage through choice. We also see buyer power in the form of community
voice: students share reviews on social media and educator ratings, which can influence a
platform’s reputation. One student might not influence a course, but collective feedback can
push a company to replace a teacher or improve a feature. Enterprise or bulk buyers are not
a big factor yet in B2C EdTech, since sales are mostly individual, but in any institutional
deals (e.g., selling course packages to schools or companies), those clients would have
stronger negotiating power on pricing. In summary, while EdTech platforms provide unique
value, the availability of alternatives and ease of switching give substantial power to the
buyers. Unacademy experiences this as it must continually offer promotions (e.g., referral
discounts, scholarship tests) to attract and retain students in the face of competition.

4. Bargaining Power of Suppliers – Moderate. The key “suppliers” in

Unacademy’s business model are the educators/content creators and to an extent
technology providers. Educators – the teachers who create and deliver courses – are
arguably the most crucial resource for an EdTech platform. Top-quality educators with
proven track records (for example, a teacher known for producing top rankers in UPSC or
IIT-JEE) have considerable bargaining power. They can choose which platform to teach on,
and often platforms compete to onboard famous teachers by offering higher pay or
incentives. In Unacademy’s case, it has over 50,000 educators on its platform , but a small
percentage of star educators drive a large share of subscriptions. These star tutors can
demand significant revenue share or fixed salaries. There have been instances of
high-profile teachers switching platforms or starting their own ventures, which can cause the
platform to lose students. Thus, Unacademy must invest in maintaining good relations and
compensation for its educators – indeed, payments to educators constituted ~22% of
Unacademy’s expenses in FY2022 (₹814 crore) . On the other hand, not all educators have
high power – for many, Unacademy offers a big reach they couldn’t get on their own, so they
are willing to accept the platform’s standard terms. The company has created an ecosystem
where upcoming teachers can gain fame via Unacademy, somewhat reducing individual
leverage. Besides educators, the technology suppliers (cloud services, bandwidth providers)
can be considered suppliers. However, their bargaining power is limited since Unacademy
can choose among various tech vendors (Amazon AWS vs. others) and tech costs are a
smaller fraction of total costs compared to content. Content licensing could be another
supplier aspect – e.g., rights to certain exam questions or curricula – but much of
Unacademy’s content is created in-house or by contracted educators, not licensed from third
parties. Overall, star educators have moderate bargaining power, but the platform mitigates
this by diversifying its educator base and developing some in-house content. The supplier
power is not as uniformly high as in some industries, but it is a factor requiring careful
management (e.g., offering ESOPs or revenue share to keep top teachers satisfied).

5. Threat of Substitutes – Moderate. Substitutes for online education platforms

include any alternative method of learning the same material. The primary substitutes are
traditional offline coaching classes and schools, as well as free online resources. For the
exam preparation market, offline tutoring centers (like local coaching institutes or large
chains such as Aakash Institute, Allen Career Institute, etc.) have historically been the
default choice for students. These offline options offer face-to-face interaction, disciplined
schedules, and in-person doubt solving – aspects some students and parents strongly value,
especially for younger learners. The reopening of physical coaching after the pandemic
presented a substitute that drew some learners away from online-only modes . Additionally,
many top offline institutes have strong brand legacy (e.g., Kota’s coaching centers for
engineering exams) which can be seen as a higher credibility option by conservative
parents. Unacademy recognized this threat, which is why it opened its own offline learning
centers in 2022 to provide a hybrid alternative . Another category of substitutes is free
content: platforms like YouTube have thousands of free lectures (indeed, Unacademy itself
started on YouTube, and many educators run free channels), not to mention nonprofit
sources like Khan Academy for foundational learning. Students with sufficient self-motivation
might assemble free resources and avoid paying for a structured course. Social media and
discussion forums also act as substitutes for doubt clearing or peer learning (e.g., Reddit
threads, Telegram groups sharing notes). Moreover, some students opt for self-study with
textbooks and past papers, substituting any organized coaching with independent
preparation. While these substitutes vary in effectiveness, their sheer availability exerts
pressure on EdTech platforms to justify the convenience and value they charge for. On the
other hand, online EdTech has carved out advantages that partial substitutes cannot fully
replicate: e.g., the convenience of at-home learning (no travel time), broader selection of
teachers than any single offline institute, and the combination of live interaction plus
recorded playback (something offline cannot do). In many cases, students use a mix – they
might attend school (offline) and use Unacademy for extra prep, or use free YouTube but
subscribe for test series. This means substitutes often complement rather than completely
replace the service. The threat of substitutes is thus moderate: it’s easy for users to switch to
some alternative help, but those alternatives may not offer the comprehensive solution that a
platform like Unacademy provides. The company must continue to innovate (e.g.,
mentorship programs, doubt sessions, all-India mock exams) to offer a superior value
proposition versus both offline coaching and piecemeal free content.

In summary, Porter’s analysis reveals that Unacademy operates in a highly competitive

industry with strong rivalry and empowered customers. Entry of major new players is less
likely now, but existing competitors and substitutes keep the pressure on. To succeed,
Unacademy needs to leverage its scale, content quality, and technological capabilities to
mitigate these forces – for instance, by building customer loyalty (reducing switching),
locking in top educators (reducing supplier threat), and differentiating itself sufficiently from
both offline and free alternatives.
3.2 Company Analysis – Unacademy’s Internal Environment

Having examined the external context, we turn to Unacademy’s internal situation: its
resources, performance, and strategic position. This section includes a SWOT analysis
(Strengths, Weaknesses, Opportunities, Threats) of Unacademy, a review of its financial and
competitive performance, and how it stands relative to key competitors like BYJU’S and
Vedantu.

SWOT Analysis of Unacademy

【22†Image】Figure 1: SWOT Analysis of Unacademy (Summary)

Strengths (Internal) Weaknesses (Internal)

- Strong brand recognition in online - High cash burn and losses: not yet
test-prep - Large user base & community profitable; spent ₹5.15 to earn ₹1 in FY21 -
(over 6 million monthly active users) - Heavy reliance on competitive exam
Extensive library of courses across diverse segment (limited presence in K-12 school
competitive exams- Network of top market)- Recent layoffs and cost cuts have
educators and influencers (50k+ educators, impacted employee morale - Low entry
including star teachers) - Significant funding barriers for content replication; some
and investor backing (unicorn valuation courses face piracy or free alternatives-
$3.4B) - Scalable tech platform with robust Quality consistency issues as content
live class infrastructure scales (variable educator quality, need to
monitor standards)

Opportunities (External) Threats (External)

- Huge untapped student populations in - Intense competition from bigger and

smaller cities and regional languages smaller rivals (BYJU’S, Vedantu,
(expand vernacular content)- Increase PhysicsWallah, etc.) leading to price and
market share in K-12 segment or skill talent wars - Post-pandemic shift: students
development (diversify beyond test prep)- returning to offline institutes, reducing
International expansion to other emerging online engagement - Funding constraints in
markets with similar exam cultures- market; inability to raise new capital easily
B2B/B2G partnerships: collaborate with can limit growth initiatives- Potential
schools, colleges, or government programs regulatory changes (consumer protection
for wider reach- Leverage new tech (AI rules, education policies) adding
tutors, AR/VR) to enhance learning compliance burden - Reputational risks: any
experience and differentiate scandal (e.g. content controversy or data
breach) can erode user trust quickly
Figure 1: A synthesized SWOT matrix highlighting Unacademy’s internal strengths &
weaknesses and external opportunities & threats.

From the SWOT analysis, Unacademy’s strengths include its established brand and large
learner community. It has successfully become synonymous with online competitive exam
prep for many students, which is a strong intangible asset. Its platform has the advantage of
network effects – with so many educators and students, it creates a vibrant learning
community that is hard for newcomers to replicate. Moreover, Unacademy’s multi-exam
coverage (ranging from UPSC civil service exams to IIT JEE, bank exams, etc.) means it
can cross-sell and keep students within its ecosystem as their needs evolve. The backing of
major investors (Sequoia, SoftBank, Tiger Global) not only provided capital but also
validation in the eyes of customers and potential partners. Technologically, Unacademy
quickly scaled a reliable infrastructure for live classes, and it continuously adds features (like
interactive polls, leaderboard contests, AI-driven recommendations) to keep users engaged.
These strengths have helped Unacademy become a market leader in its segment.

On the other hand, weaknesses are evident primarily in Unacademy’s financials and some
strategic limitations. The company pursued growth at the cost of efficiency – resulting in very
high operating costs. In FY2022, for instance, Unacademy’s expenses ballooned to ₹3,703
crore against ₹719 crore operating revenue, leading to a loss of ₹2,848 crore . Such losses
are unsustainable long-term and indicate operational inefficiencies or over-expansion (e.g.,
spending on marketing, salaries, etc., far ahead of revenue). Another weakness is that
Unacademy’s core user base is concentrated in the exam prep market, which, while large in
absolute terms, is narrower than the full education spectrum. It notably lagged in capturing
younger K-12 students during the pandemic compared to BYJU’S or Vedantu. In fact,
Unacademy tried offering K-6 to K-12 live classes but shut down its K-12 business by early
2022 to refocus on test prep . This highlights a strategic retreat that ceded ground to
competitors in that segment. Additionally, after years of rapid hiring, Unacademy’s culture
had to adjust to belt-tightening; the company laid off approximately 1,350 employees (over
20% of staff) in 2022 in two rounds , which may hurt internal capabilities and employer
reputation. Finally, ensuring consistent quality as the content scales is challenging – some
students have complained about varying teaching quality or discontinued courses if an
educator leaves . Maintaining a uniformly excellent learning experience across thousands of
courses is an ongoing weakness to address.

Opportunities for Unacademy abound in the evolving education landscape. First, the
untapped market in India itself is huge – millions of students in rural or semi-urban areas
have just begun accessing online education. By offering more regional language content and
affordable plans, Unacademy can capture these new users. There is also opportunity to
re-enter or expand in adjacent segments: for example, K-12 tutoring (perhaps via recorded
content or partnership with schools) remains largely untapped by Unacademy, and the
appetite for quality supplemental education in that segment is high. Another adjacent domain
is upskilling and job-oriented courses for graduates, an area where upGrad and BYJU’S (via
acquisitions like Great Learning) are active – Unacademy has experimented here through its
subsidiary Relevel (providing job placement tests and courses) and could grow it further
given the high demand for vocational and skills training. International expansion is a notable
opportunity – countries in South Asia, Africa, or Latin America have similar competitive
exams and a dearth of quality coaching, representing a potential market for Unacademy’s
model. For instance, expanding to offer tutoring for exams in Bangladesh or Nigeria could
leverage Unacademy’s platform with localized content. Partnering with institutions
(B2B/B2G) is another path: Unacademy could provide its tech platform and content to
schools, colleges, or state governments as a service, opening a new revenue stream and
widening impact. In fact, during COVID, Unacademy offered its platform free to educational
institutions to conduct live classes – this could be turned into a strategic offering (like a SaaS
platform for education) in the future. Lastly, technology trends (AI, VR) present opportunities
to differentiate – Unacademy could implement AI tutors for doubt resolution or use virtual
reality for immersive lessons (for example, a virtual science lab experience), staying at the
cutting edge and attracting students seeking modern learning methods .

The threats facing Unacademy are significant and must inform its strategic choices.
Competition is arguably the biggest external threat – BYJU’S, with its deep pockets and
broad portfolio, continues to be a formidable competitor across segments, and has made
moves into Unacademy’s turf (for example, BYJU’S acquired Aakash, a top offline test prep
chain, thereby strengthening its presence in the exact domain Unacademy leads). Similarly,
Vedantu’s push into hybrid tutoring (acquiring Deeksha with 40 offline centers) and
PhysicsWallah’s popularity among price-sensitive students threaten to chip away at
Unacademy’s market share if it does not respond effectively. Another threat is the changing
consumer behavior post-COVID: many students who flocked to online learning out of
necessity have returned to offline coaching or school as those reopened. EdTech companies
have reported lower engagement and higher customer acquisition costs in 2022-2023
compared to the lockdown period. Unacademy acknowledged that “a large portion of our
core business has moved offline” in 2022 , reflecting this threat. Economically, the funding
squeeze means Unacademy might not easily raise new capital to fund big initiatives or cover
losses – it must survive on existing funds and eventual operating profits. If the capital market
remains tight, some competitors might consolidate or exit, but those remaining (especially a
cash-rich BYJU’S or PhysicsWallah with profits) could strengthen their position, intensifying
competition in a slower market. Regulatory intervention is a looming threat: while so far
mostly advisory, there is a possibility of stricter regulations on EdTech advertising, pricing
(maybe restrictions on upfront large fees), or data usage which could increase compliance
costs or limit certain aggressive sales tactics that some EdTech players used. Additionally,
education is a sensitive sector – any misstep (like a publicized incident of a teacher
misconduct or a political controversy such as the 2023 case of an Unacademy educator
being fired over remarks in class ) can lead to public relations issues and user distrust.
Brand image in education takes long to build but can be quickly tarnished by negative press.
Unacademy, being high-profile, is susceptible to such scrutiny.

Financially, Unacademy’s recent performance underscores the need to address these

internal weaknesses and external threats. Revenue and user metrics: Unacademy’s
operating revenue grew impressively in FY2021 and FY2022. It clocked ₹398 crore revenue
in FY2020-21, which then nearly doubled to ₹719 crore in FY2021-22 – reflecting the
pandemic-fueled growth and successful conversion of users to its paid Unacademy Plus
subscriptions. The vast majority of this revenue (98%) came from course subscription fees ,
confirming that its freemium model (free content to attract users, then upsell paid packages)
was working to an extent. By mid-2021, Unacademy had over 600,000 paying subscribers
out of ~6 million monthly active users , roughly a 10% conversion rate of active users to paid
– a notable achievement in a price-sensitive market. The platform overall had over 50 million
registered users by 2021 , indicating a wide funnel. However, growth in user base began to
slow in 2022 as offline options returned, and Unacademy even saw a decline in total
subscribers in some quarters, according to industry reports. On the financial loss side,
FY2021 saw a net loss of ₹1,537 crore, which then widened by 85% to ₹2,848 crore loss in
FY2022 – a stark indication that costs were outpacing revenue. This loss was exacerbated
by one-time expenses like a large ESOP compensation cost (₹1,140 crore) paid to
employees in FY22 , but even excluding that, the cash burn was high. Employee salaries
and benefits (including educator payments) and advertising were the largest cost centers
(together about 70%+ of expenses) . Unacademy’s financial reports showed that in FY22 it
spent ₹5.15 to earn every ₹1 of operating revenue – clearly an unsustainable unit economics
that needed correction.

The company took steps in FY2023 to cut costs: exiting non-core ventures, slashing
marketing spend (e.g., ending its costly IPL sponsorship from 2023) , and reducing
manpower. By FY2023, these measures started reflecting: operating revenue reportedly
grew ~26% to ₹907 crore, while net loss was reduced to around ₹1,678 crore (a 41%
reduction from FY22) . And recent news indicates that in FY2024, Unacademy further
narrowed losses by ~62%, posting a net loss of ₹631 crore on slightly declining revenue .
This trajectory suggests that Unacademy is correcting course towards improved financial
health, though it is not out of the woods yet. The CEO has spoken of targeting an IPO by
2024 and focusing on becoming cash-flow positive before that . It’s a race to get to
profitability while retaining enough growth momentum.

Competitive Position: Unacademy vs. Key Competitors

In India’s EdTech arena, Unacademy’s main competitors include BYJU’S and Vedantu (as
mentioned in the case brief), along with others like PhysicsWallah, upGrad, etc. A brief
comparison is in Table 2 below:

Table 2: Major EdTech Players in India (Unacademy and Competitors)

Company Focus Areas Valuation Scale and Recent

(Latest) Notable Strategic
Metrics Moves

BYJU’S K-12 learning ~$22 billion ~150 million Acquired ~15

app, test prep (2022) registered companies (incl.
(JEE, NEET, learners Aakash Institute
etc.), exam (globally) ; ~7.5 for offline,
prep, upskilling, million paid WhiteHat Jr,
international users. Revenue etc.) for
expansions ₹2,428 cr diversification;
(US, Middle FY2021 Facing
East) (reported) profitability and
 debt challenges
in 2023.

Unacademy Competitive ~$3.44 billion ~6 million Grew via

exam prep (2021) monthly active acquisitions
(UPSC, users, 0.6 (PrepLadder –
banking, million paid medical exams,
IIT/medical, subscribers ; etc.); Opened
etc.), online Revenue ₹719 offline coaching
courses and cr FY2022 centers in 4
test series; (Unacademy cities (2022);
some forays Group total Launched new
into K-12 and ~₹844 cr incl. verticals
skill other income) (Relevel for
development jobs, Graphy for
creators).
Undertook
major
cost-cutting in
2022-23 to
reduce burn.

Vedantu Live online ~$1 billion ~35 million Focused on live

tutoring for K-12 (2021) monthly users interactive
(Grades 6-12), (mostly free) & classes model.
entrance exam 200k+ paid In 2022,
prep (2021) ; scaled acquired
(JEE/NEET), during Deeksha (40
some early pandemic for offline centers)
learning; hybrid school to implement
coaching segments hybrid model .
centers Also underwent
layoffs in 2022
to cut costs.

PhysicsWallah Low-cost online ~$1.1 billion ~6 million Emphasizes

and offline (2022) (raised YouTube affordable
(hybrid) $100M at subscribers; pricing (courses
coaching for $1.1B) App with ~5 as low as
JEE, NEET, and million installs. ₹4,000).
competitive Achieved Expanding
exams; content profitability: ₹98 physical centers
primarily in cr profit on ₹233 (“PW
 Hindi/vernacular cr revenue in Pathshala”)
languages FY2022 . across multiple
cities. Planning
international
forays and
broader
curriculum while
maintaining
lean operations.

(Sources: Company disclosures, TechCrunch, Reuters, news reports)

In terms of positioning, BYJU’S has been the market leader in Indian EdTech by scale and
funding. It started with K-12 learning videos and has become a behemoth covering almost
every segment: early learning, test prep, tutoring, online degrees (via acquisitions like Great
Learning), and even overseas markets. BYJU’S huge valuation ($22B) allowed it to acquire
competitors (like Toppr, TutorVista) and complementary businesses. Its strength is a massive
content library and brand ubiquity (celebrity endorsements, visibility as Indian cricket team
sponsor, etc.). However, BYJU’S also reported enormous losses and debt issues recently,
delaying its IPO and leading to thousands of job cuts . This turmoil at BYJU’S could create
an opening for Unacademy if BYJU’S retrenches to core areas.

Vedantu, on the other hand, was a close peer to Unacademy during the pandemic, focusing
on real-time online classes for school students. Vedantu’s differentiation was live interactivity
and it targeted a slightly younger demographic (middle and high schoolers), whereas
Unacademy focused more on college-age exam aspirants. Vedantu became a unicorn in
2021 and, like Unacademy, had to lay off employees and seek a sustainable model in 2022.
By acquiring an offline institute (Deeksha) , Vedantu signaled that it too sees hybrid learning
as the way forward, similar to Unacademy’s opening of learning centers. In competitive
terms, Unacademy and Vedantu compete in overlapping areas (like IIT-JEE prep), but
Vedantu is stronger in school tutoring while Unacademy is stronger in post-school
competitive exams.

The rise of PhysicsWallah (PW) is a significant competitive event. PW started as a single

teacher’s YouTube channel and turned into a startup in 2020, focusing on ultra-affordable
online courses in Hindi for engineering and medical exam prep. In 2022, it shocked the
industry by raising $100M at a $1.1B valuation – becoming a unicorn and turning a profit, a
rarity in EdTech. PhysicsWallah’s model undercuts companies like Unacademy on price (its
yearly fees are often ~1/10th of Unacademy’s Plus subscription) and appeals to a more
cost-conscious segment. While Unacademy offers a polished app experience and a breadth
of courses, PW offers a no-frills, teacher-driven approach. Notably, PW has also started
offline centers across India, directly competing with Unacademy’s offline foray and with
legacy coaching institutes. For Unacademy, PW represents a threat of being undercut in its
core market of exam prep. Unacademy might need to segment its offerings (premium vs
budget) or highlight quality differences to compete with PW’s pricing.
Overall, Unacademy holds a solid second-place position in the Indian EdTech ecosystem
when it comes to competitive exams and online tutoring, behind BYJU’S in overall scale. Its
brand is particularly strong in test prep for government and postgraduate exams (like UPSC
Civil Services, where its competitor BYJU’S also plays, and GATE, etc.). Against BYJU’S,
Unacademy’s advantage is a community-driven approach and live class focus (whereas
BYJU’S began with recorded video lessons and only later moved into live classes and
tutoring). Unacademy is also seen as more affordable than BYJU’S high-priced packages –
for example, BYJU’S has been known to sell multi-year packages costing tens of thousands
of rupees with tablet devices, while Unacademy’s subscription for a year of unlimited classes
could be in the ₹30k range (less if using discounts). This positioning as a relatively
affordable, accessible platform has endeared Unacademy to many serious aspirants.
Against Vedantu, Unacademy has the advantage of a broader course catalog (Vedantu
didn’t cover as many exam categories) and arguably better monetization of its user base
(Vedantu offered a lot of free classes for younger students, which didn’t convert to revenue
as easily). However, Vedantu’s strength in one-to-one tutoring and younger students is
something Unacademy hasn’t cracked.

One should also note the traditional competitors – the brick-and-mortar coaching centers
that have long dominated exam preparation in India. Unacademy’s move to partner with and
hire educators from top institutes in Kota (the hub of engineering/medical coaching) shows
that it acknowledges the value in what those offline players offer. BYJU’S acquisition of
Aakash (a leading medical/engineering coaching chain) also indicates that offline brands still
carry weight. In this light, Unacademy’s strategy seems to be evolving from an all-online
disruptor to a more hybrid education company.

In summary, Unacademy’s competitive position is that of a leading innovator under pressure

to consolidate its gains. It has carved out a significant market share and brand presence, but
to maintain and grow that, it must deftly handle competition from both legacy and new
players. This will involve strategic choices about where to compete head-on and where to
differentiate or collaborate (for instance, is it better to compete with PhysicsWallah on price,
or to focus on a premium segment and let PW have the budget segment? Such decisions
are strategic in nature).

3.3 Functional Analysis

To further diagnose Unacademy’s situation, we analyze key functional areas of the company:
Marketing, Technology, Human Resources, Operations, and Monetization (business model).
This reveals how well-aligned Unacademy’s internal capabilities are with its strategy and
highlights areas for improvement or change.

A. Marketing and Customer Acquisition:

Unacademy’s marketing approach has been multifaceted, evolving as the company grew. In
its early days, Unacademy’s growth was very much organic and content-driven – it offered
free lessons on YouTube and its platform which attracted learners through word-of-mouth.
The “freemium” strategy built a large user base with minimal paid marketing. Top educators,
some already popular on YouTube or other forums, brought their followings to Unacademy.
This gave Unacademy a grassroots marketing advantage – essentially, its educators
became its marketers, promoting their upcoming classes on social media. The company also
smartly engaged students via competitive gamified events like Unacademy Combat, a free
scholarship test/quizzing competition that runs regularly and keeps the buzz alive among
aspirants. Such events serve dual purposes: branding (creating an association with test
excellence) and lead generation (top performers might get free subscriptions, others get
discount offers).

As the platform matured and competition heated up, Unacademy ramped up paid marketing
and branding efforts. It invested in high-profile sponsorships – notably becoming an official
partner of the Indian Premier League (IPL) cricket tournament in 2020 and 2021, which gave
it nationwide visibility. The “Let’s Crack It” advertising campaign was plastered across TV
and digital media during IPL, featuring quirky ads that resonated with young audiences.
Unacademy also roped in celebrities and achievers for promotional masterclasses (e.g.,
sessions by cricket stars and prominent civil servants) to enhance its brand cachet. All these
efforts dramatically increased web traffic – for example, Unacademy’s website traffic
reportedly surged 5x during some of these campaigns (as per case studies of their digital
marketing) . However, this came at a cost: advertising expense in FY2022 was ₹549 crore ,
a significant spend (though still lower than BYJU’S reportedly much higher ad spend with
celebrities like Shah Rukh Khan).

In terms of positioning, Unacademy markets itself as “India’s Largest Learning Platform”

where quality education is accessible to all. The emphasis is on democratization – many of
its ads highlight success stories of ordinary students cracking tough exams with
Unacademy’s help, reinforcing a message that wherever you are, you can learn from the
best. This positioning has been consistent and aligns with its product (live classes that
anyone can join).

Unacademy’s marketing also leverages social media heavily. The company is very active on
platforms like Instagram, Telegram (for sending updates and materials to student groups),
and LinkedIn (for thought leadership in EdTech). Its content team produces short clips,
motivational posts, and exam tips that circulate widely. During the pandemic, such online
community building helped maintain engagement. In addition, Unacademy created
community touchpoints like the Unacademy Educator App – encouraging educators to share
free content and interact, which indirectly markets the paid offerings. Another marketing
channel has been referral incentives – students often get referral codes to share with peers,
giving both sides discounts, thus fueling word-of-mouth growth.

However, by 2022, Unacademy recognized it needed to cut back on expensive mass

marketing to move toward profitability. As mentioned, the CEO announced stopping big
sponsorships like IPL to conserve cash . Moving forward, Unacademy’s marketing is likely to
be more targeted – focusing on digital channels and specific exam communities rather than
broad TV ads. The challenge will be to keep acquiring new students at lower cost. One
potential lever is content marketing: Unacademy can publish more free resources (blogs,
YouTube explainers) to draw SEO traffic of students searching for exam tips, which can then
be converted. Given its wide content base, it’s well-positioned to dominate search results for
many exam queries. Another lever is highlighting its results – if it can publicize the success
percentage of its learners in exams (like how many Unacademy students cleared IAS exam
top 100 etc.), that acts as powerful marketing to new aspirants.
In summary, Unacademy’s marketing strength lies in its digital-savvy, community-oriented
tactics, and a brand image of youthful, accessible quality. It will need to sustain this with
lower budgets – likely by leaning even more on organic channels, referrals, and content
virality, rather than costly ads.

B. Technology and Platform:

Unacademy is fundamentally a technology-driven platform. Its ability to deliver live streaming

classes with interactivity to millions of users is a core competency. The platform consists of a
web application and mobile apps (Android, iOS) where users can browse courses, attend
live classes, view recordings, take quizzes, and engage in discussions. Key tech features
include:

• Live Video Streaming at Scale: Unacademy built or integrated a live-stream

solution that supports large concurrent classrooms. In a live class, students can chat
questions, answer live polls, and the teacher can see the stats or select student queries to
answer. These require real-time low-latency streaming and robust server-side infrastructure.
Unacademy’s engineering likely uses cloud services (AWS, etc.) and content delivery
networks to ensure smooth streaming even on low-bandwidth connections (important for
Indian users in rural areas). They also record these live sessions for later viewing, which
demands storage and retrieval efficiency.

• Personalized Learning Experience: The platform uses data analytics to

personalize each user’s feed. Based on a learner’s exam goal and activity, Unacademy
recommends relevant courses, educators, and practice questions. It tracks progress and
prompts users with reminders for upcoming live sessions they’ve enrolled in. In 2022, about
70% of learners reported improved experience due to such personalization . The company
has a data science team that analyzes metrics like retention, completion rates, etc., to
continually tweak the experience (for example, suggesting an easier course if a student is
struggling or nudging them to attempt mock tests).

• Testing and Assessment Tools: Unacademy’s tech includes the ability to

conduct online tests with automated checking. They host mock exams (timed tests) where
the platform can auto-grade objective questions and give instant ranks. They’ve integrated
features like solving quizzes during live class (teacher can pose a multi-choice question,
students click answers, and results show live – adding gamification). They are increasingly
integrating AI for evaluation, e.g., an AI-based test prep in some courses that can evaluate
answers or proctor exams, though subjective answer grading (like essays for UPSC) still
requires human feedback.

• Scalability and Reliability: A significant tech aspect is ensuring uptime and

reliability, especially during peak periods (like pre-exam season). Unacademy’s platform has
seen instances of over 100,000 live learners in a single session (for free All-India Mock tests
and special classes). It has largely handled these without major crashes – a testament to its
backend engineering. Their DevOps likely prioritizes autoscaling of servers and real-time
monitoring. In mid-2020, when they made the platform free for schools, they had to quickly
scale to support those additional classes – which they accomplished, indicating agile scaling.
 • Mobile Optimization: Since over 70% access via mobile , Unacademy’s tech
is heavily optimized for smartphones – including offline downloading of videos (for learners
with intermittent internet), adaptive bitrate streaming (to handle various network speeds),
and a mobile-friendly interface. They also utilize push notifications on mobile to increase
engagement (alerting a user 10 minutes before their class starts, for example).

• Security and Data: After the 2020 data breach where millions of user emails
and passwords were leaked, Unacademy boosted its security protocols. They likely
implemented stronger encryption, multi-factor authentication options, and regular security
audits. Achieving 98% compliance with global data standards was claimed . This is crucial
because as an EdTech firm, they have minors on the platform too, so data privacy and safety
are paramount (e.g., moderating class chats to prevent abuse, etc.).

• Product Development and Innovation: Unacademy has shown a culture of

rapid product iteration. It rolled out features like “Raise a Hand” (students can virtually raise
hand to speak in live class audio) and Voice chat for doubt sessions to improve interactivity.
It also launched separate products: Graphy – a platform for educators/creators to build their
own courses (like an online course creation SaaS), indicating its technology’s adaptability to
new use-cases. Moreover, Unacademy explored a professional networking/job prep tech
with Relevel (essentially an online testing platform plus job board). Although some
experiments (like a USMLE prep platform in the U.S.) were short-lived , the willingness to
experiment is a tech/culture strength.

In summary, Unacademy’s technology is robust and has been a key enabler of its rapid
growth. Going forward, continuing to innovate (perhaps integrate more AI for personalized
study plans or use machine learning to identify when a student is likely to churn and
intervene) will be crucial to maintain a competitive edge. Additionally, as it ventures into
hybrid models, technology that seamlessly integrates online and offline experiences (like an
app for scheduling in-person classes, tracking performance across modalities) could be an
area to develop.

C. Human Resources (People and Culture):

Unacademy’s HR can be viewed in two parts: the educator workforce and the
corporate/technical workforce.

For educators, Unacademy essentially acts as a marketplace/platform where teachers

provide lessons. Initially, many educators were part-time or freelance content creators
earning via revenue share from subscriptions or fixed stipends. As competition for top
teachers grew, Unacademy started giving substantial salaries or contracts to some star
educators (media reports mention some “top educators” earning multi-crore annual
packages from the platform, reflecting their massive student followings). Managing
thousands of educators is a HR challenge – Unacademy provides training on how to conduct
live classes, encourages use of its teaching tools, and has to enforce quality guidelines. The
platform also has a feedback/rating system for teachers. In 2022, as cost cutting happened,
Unacademy suspended contracts of some educators and focused on those with better
performance metrics . This, however, must be balanced carefully, because sudden removal
of an educator can upset students in the middle of a course (a noted issue per some
complaints) . To improve loyalty, Unacademy has offered stock options (ESOPs) to
educators and did buybacks – implying that it treats top educators almost like key employees
. The culture towards educators has to be supportive to keep them from jumping to rivals.

On the corporate HR side, Unacademy grew from a small startup to a large organization
rapidly. It had reportedly over 5,000 employees at its peak in 2021-22 including those from
acquired companies. The culture initially was startup-like – fast-paced, young (the founders
themselves were in their 20s when starting), and mission-driven (“educate India” ethos).
Perks were generous during the boom (news circulated about free meals, cab rides, etc. for
staff). In mid-2022, CEO Gaurav Munjal sent an internal memo emphasizing frugality and
focus, calling it an “Iconic Goal” to become profitable and even ending complimentary meals
and perks for employees to cut costs . This marked a shift in culture from hyper-growth to
efficiency. The layoffs in 2022 (roughly 1,350 full-time employees cut) inevitably impacted
morale. Munjal took personal responsibility in communications and offered decent severance
packages , but surviving employees faced increased workload and uncertainty. To
counteract negativity, the leadership also took pay cuts themselves and communicated
transparently about the company’s cash runway and IPO plans . This transparency likely
helped maintain some trust.

HR challenges include: retaining key talent (engineers, product managers) in a volatile

startup job market, and maintaining a strong culture in a now partly remote work
environment (many educators and employees might work remotely across India).
Unacademy’s mission-driven nature helps – many employees are attracted by the idea of
democratizing education, which can be a motivator beyond just salary. The company has
also instituted programs like Unacademy Leadership Council etc., to involve star educators
in company decisions, fostering a sense of ownership.

Diversity and inclusion is another aspect: as an EdTech, it likely aims for a diverse educator
base in terms of gender and region. The corporate team, however, is primarily based in
Bangalore and the typical tech startup demographics. There’s room for improvement in
gender diversity in tech roles (common across startups).

One unique HR aspect is that one co-founder, Roman Saini, was himself an educator (an
ex-civil servant who taught on the platform) – this kept educator perspective in top
management. But reports say he later shifted to another role, and by 2023, some
co-founders moved to different positions or left day-to-day operations, which might affect
culture if not managed.

In summary, Unacademy’s HR has evolved from freewheeling expansion to a more

measured approach. Strengths lie in having a passionate workforce and thousands of
knowledgeable educators; weaknesses or challenges lie in aligning all of them with new
efficiency goals and preventing attrition of star performers (whether a star teacher or a key
engineer). Maintaining morale and culture through the industry’s ups and downs will be vital
for stable growth.

D. Operations (Product Delivery and Customer Service):

Unacademy’s operations revolve around content creation, live class delivery, platform
maintenance, and support services. On the content side, course operations involve
identifying what courses or exam categories to offer, recruiting educators for them, and
creating a schedule/curriculum. Unacademy has a content team that works with educators to
design courses (syllabus coverage, lesson plan). Given the vast number of courses (multiple
courses for the same exam by different teachers to give students choice), scheduling is a
complex operation. They must ensure that live classes for popular courses don’t clash too
much and that they are timed conveniently for students (often evenings or early mornings).
The platform likely uses scheduling algorithms and manual coordination to handle thousands
of live classes weekly.

They also operate doubt resolution channels – some courses have dedicated doubt tutors or
live doubt classes separate from main lectures. This additional academic support is part of
operations. During exam seasons, Unacademy often ramps up with revision classes
marathons, etc., which requires short-term operational scaling (getting educators to conduct
extra sessions, ensure platform stability during those high-traffic events, etc.).

Customer service is another operational component: Unacademy has to handle queries from
students regarding subscription issues, technical problems, content doubts, and general
guidance. They likely have a support center reachable via in-app chat or email, and possibly
a call center for payment or technical issues. Ensuring timely resolution is crucial because a
frustrated student can easily vent on social media and damage reputation. The operations
team also handles the subscription management – e.g., activating subscriptions, renewals,
and cancellations, processing refunds in some cases. Simplifying the process (one-click
purchase, easy refund if legitimate issue) is part of good operations and influences customer
satisfaction.

A newer operational domain for Unacademy is the offline learning centers launched in Kota,
Delhi, etc. Here, the company had to set up physical infrastructure: classrooms, IT
equipment, and hire on-ground staff (like center managers, counselors). It partnered with
local teachers (some from established institutes) to run these classes. This hybrid model
means Unacademy’s operations now extend to things like facility management, scheduling
of in-person batches, and ensuring the offline-online integration (for example, a student at a
center might also use the app for additional practice – the operations need to unify their
experience). This is a significant shift because running physical centers is cost-heavy (rent,
utilities, etc.) and logistically different from pure software operations. Unacademy reportedly
had a modest start with a handful of centers; whether this scales or remains a niche offering
will depend on how well they execute operationally in a domain where competitors (like
Aakash, Allen) have decades of experience.

Another aspect is exam result operations – after major exams, Unacademy is keen to gather
data on how many of its students succeeded. They often run campaigns asking “Tell us if
you cracked the exam using Unacademy” etc. Operationally, collecting this feedback and
verifying it (to avoid false claims) is important for marketing and course improvement.

Finally, acquisition integration is an operational challenge Unacademy has faced. They

acquired about a dozen companies from 2018 to 2021, including PrepLadder (medical PG
prep), Mastree (kids’ learning), TapChief (professional networking, which became Relevel),
and more . Integrating these into Unacademy’s operations – aligning the culture, merging
tech where needed, and achieving synergies – has been mixed. PrepLadder was retained as
a separate brand but integrated well and became one of Unacademy’s most successful
verticals (targeting med students) . Some others like Mastree were shut down after
underperforming . The ability to effectively integrate or wind down acquisitions shows
operational decision-making. There might have been some distraction from core operations
due to trying to handle too many products; the company seems to have refocused now on
what works best.

In summary, Unacademy’s operations are complex but largely well-managed in terms of

delivering a consistent learning experience online. The challenge will be to maintain quality
and efficiency as they diversify offerings (offline, new exam categories) and to continue
improving support and outcomes to keep students satisfied.

E. Monetization and Business Model:

Unacademy’s business model has primarily been B2C subscription-based. Users can learn
for free to an extent (special classes, some quizzes), but the premium content is behind a
paywall called Unacademy Plus. The Plus subscription typically gives access to all live and
recorded courses for a chosen exam category (or all categories, depending on the plan) for
a period (say 6 months, 12 months). There is also a higher tier called Iconic subscription
which adds personal mentorship and extra doubt solving. As of FY2022, this subscription
model accounted for ~98% of operating revenue . Pricing is a crucial element: Unacademy
has generally priced its plans lower than comparable offline coaching. For example, a
year-long IIT-JEE online package might be ~₹35,000 on Unacademy, whereas offline
classes can cost ₹100,000+. This competitive pricing was aimed at undercutting traditional
options and scaling user volume. Furthermore, Unacademy offers EMI options and partners
with finance companies so students can pay in installments – important for affordability.

Another monetization avenue has been competitive exam test series and study material.
Unacademy sold about ₹13.7 crore worth of educational material in FY2022 . These could
be printed books, PDFs, or standalone test series sold separately from the main
subscription. While relatively small in revenue share, it’s an additional income stream. It also
sometimes monetizes by conducting paid scholarship exams (where a nominal fee is
charged and top scorers get scholarships – though these fees are small and often offset by
the marketing value).

Unacademy initially did not heavily use advertising as a revenue stream (since they didn’t
want to show ads to learners and disrupt experience). However, with a large free user base,
there is potential to monetize via ads or lead generation (for example, tie-ups with education
loan providers or colleges to advertise relevant offerings to students). It’s unclear if
Unacademy has started any significant ad monetization; likely, it still keeps the platform
largely ad-free to focus on subscription conversion.

In recent expansions, Unacademy explored enterprise and alternate monetization. The

launch of Graphy indicates a possible SaaS (Software as a Service) model – Graphy allows
creators (not just in traditional education but any content creators) to build their own course
websites/apps. This could bring in revenue through licensing fees or revenue-share from
those creators. It’s a different customer (the educator as customer, rather than student).
Similarly, Relevel took a different approach: it offered free upskilling tests to candidates and
charged recruiting companies for access to top scorers (essentially a placement fee model).
Relevel was an attempt to monetize the job outcomes side of education. Early reports say
Relevel saw limited success and has pivoted, so that monetization wasn’t strongly proven
yet.

Unacademy’s path to profitability will likely involve increasing ARPU (Average Revenue Per
User) either by slight price increases or by upselling more services per customer. The
introduction of Iconic mentorship (which costs more than Plus) is one example of upselling to
those who can pay for premium features. Another strategy is to extend a student’s lifetime
value by catering to multiple needs – for instance, if a student used Unacademy for college
entrance, later they could use it for a government job exam, etc., thus subscribing longer.
Cross-selling between categories can raise revenue without acquiring a new user from
scratch.

One emerging monetization is the offline centers: these will presumably have their own fee
structure, possibly higher than online since they entail physical classes. Unacademy might
monetarily benefit by combining these – e.g., a student pays for an offline course and gets
the online subscription bundled. If executed well, the offline centers could add a high-margin
revenue stream (as historically, offline institutes had significant profit margins before EdTech
disruption).

Finally, cost control is part of monetization in effect – converting more of revenue to profit.
Unacademy has taken steps like cutting back on discounts (previously they often ran big
discounts on subscriptions, which while gaining users, lowered effective revenue). By 2023,
they reduced discounting to improve realized prices. They also curtailed their “spend to
grow” philosophy, as seen by drastically lowering marketing spend. The focus has shifted to
monetizing efficiently rather than just growing user count.

In summary, Unacademy’s monetization model is solid in concept (subscription is a proven

model in EdTech), but the key is improving the ratio of lifetime value to acquisition cost. The
company is adjusting its strategies – exploring new revenue lines like B2B (Graphy) and
offline, optimizing pricing, and reducing variable costs like educator payouts through scaling
group classes. The next section will consider strategic decisions related to these
monetization approaches and other functional areas identified.

4. Decision & Alternatives

Unacademy’s leadership is faced with major strategic choices on how to steer the company
forward given the analysis above. The overarching decision is how to achieve sustainable
growth and profitability in the new market context. Below we outline several strategic
alternatives, each with its rationale, along with an evaluation of their pros and cons:

Alternative 1: Focus and Consolidate (Core Concentration) – “Do fewer things better.”

One option is for Unacademy to retrench to its core strengths – online test preparation – and
aim to be the unequivocal leader in that domain, foregoing aggressive diversification for now.
This strategy would involve consolidating operations around key exam categories (like
GATE, UPSC, IIT-JEE, etc.), ensuring those verticals are profitable or break-even, and
postponing or exiting peripheral ventures that drain resources. Essentially, Unacademy
would prioritize depth over breadth, perhaps even scaling back international or K-12
ambitions until core business is sustainably profitable.
 • Pros: This focus can improve operational efficiency and brand clarity. By
channeling resources to core areas, Unacademy could solidify quality (e.g., improving
content and results for its main courses, which boosts reputation and word-of-mouth). It
reduces the complexity of doing too many things – making it easier to manage costs.
Historically, many startups find success by winning one market first before expanding. Given
the funding crunch, being the dominant profitable player in a niche might be wiser than being
second-place in many. It also aligns with what the market is currently valuing – profitability;
demonstrating a profitable core could rebuild investor confidence for the future. Additionally,
focusing on core might help fend off specialized competitors like PhysicsWallah by doubling
down on superior content/teachers in those exam domains.

• Cons: The obvious downside is limited growth prospects – the core exam
prep market, while large, may not alone deliver the venture-scale returns investors expect.
By not diversifying, Unacademy could miss out on adjacent revenue streams (e.g., huge
K-12 market, global markets) and leave those to competitors. There’s also a risk that if the
chosen “core” itself faces headwinds (say, a decline in demand for engineering entrance
coaching due to some systemic change), the company would be too narrowly focused.
Reducing initiatives might demotivate teams working on those, and reversing diversification
(shutting verticals) could mean sunk costs with no return. Also, competitors who continue
multi-pronged expansion (like BYJU’S covering K-12 to upskilling) might capture customers
that Unacademy leaves on the table, making it harder to re-enter later.

Alternative 2: Diversification and Product Expansion – “Expand into new segments or

products to fuel growth.”

This is the opposite approach: leverage Unacademy’s platform and brand to enter new
domains. Possibilities include diversifying content (for example, adding language learning,
skill certification courses, or even college curriculum tutoring) and expanding demographic
reach (such as re-entering K-12 online education in a renewed way, or launching courses for
international exams like GRE, GMAT, TOEFL to target Indian and foreign students). It could
also mean launching entirely new products – perhaps an EdTech hardware (like a learning
tablet) or more B2B offerings. The idea is to use existing capabilities to create new revenue
streams.

• Pros: Diversification can open up high-growth opportunities. For instance,

K-12 e-learning in India is still a massive market – Unacademy staying out cedes it to
BYJU’S and others, but if it finds a more viable model (maybe recorded content or hybrid
tie-ups with schools), it could tap into millions of school kids. Similarly, the
upskilling/certification market (corporate training, coding courses) is growing with working
professionals – by diversifying into that, Unacademy reduces reliance on the cyclical
academic exam market. Diversification also allows cross-pollination: a student might use
Unacademy from high school through college prep through career prep – maximizing lifetime
value. From a financial standpoint, new segments could attract new pools of capital or
partners (e.g., partnering with universities for degree programs). With its large user base,
Unacademy can market new services to existing users at low cost. This strategy hedges
against downturns in any single segment (portfolio effect).
 • Cons: The company has already experienced some pitfalls of diversification
(e.g., Mastree’s failure, or the costly experiment of Relevel). Each new segment can be like
starting a new business – requiring understanding of a different customer profile, possibly a
different sales model (for example, selling to schools is B2B, very different from
direct-to-student). There’s a risk of stretching the management thin and losing focus on
execution quality. Diversification can also burn cash quickly if not done carefully – and with
limited funding, failed experiments could threaten the core business’s stability. Additionally,
Unacademy might face incumbents in each new segment who have their own advantages
(for instance, upGrad in online degrees, or Duolingo in language learning). Without a clear
competitive edge or synergy, diversification might not succeed. In short, the time and cost to
win in a new area could be high, at a moment when Unacademy is trying to cut costs.

Alternative 3: Pursue Premium Offerings and Monetization Upsell – “Go premium to increase
revenue per user.”

In this strategy, Unacademy would shift part of its focus to a premiumization approach –
targeting customers who are willing to pay more for superior or personalized services. This
could include enhancing the Iconic subscription (1-on-1 mentorship, tutoring on-call), offering
small batch or private live classes at a higher price point, launching specialized programs
(e.g., an elite batch that guarantees top rankers, with intensive attention, at a high fee), or
bundling courses with exclusive materials or offline workshops. Essentially, it’s about
extracting higher ARPU from those who can afford it, thereby improving profitability.

• Pros: Premium pricing could significantly improve margins. A segment of

users (especially in metro cities or those retaking exams for a better score) may be willing to
pay much more for an edge. By introducing premium tiers, Unacademy can monetize
affluent customers who otherwise might spend that money on a personal tutor or a famous
offline institute. This strategy can increase revenue without proportional increase in user
acquisition costs (since it’s about charging existing users more for added value). It might
also elevate Unacademy’s brand into a higher echelon of quality, which has spillover benefits
for the standard offerings. If successful, premium services could even reduce the reliance on
sheer volume growth – meaning Unacademy could serve fewer, high-paying customers and
still meet revenue targets, which is easier on operations. Moreover, competitors like BYJU’S
have effectively used premium sales (BYJU’S sells packages costing ₹50k+ regularly) –
Unacademy tapping that market could capture some of the wallet share currently going to
offline premium tuitions.

• Cons: There is a risk of alienating Unacademy’s core value proposition of

affordability and access. If not balanced, a pivot to premium could make average users feel
neglected or priced out. Also, moving into premium individualized services might undermine
scalability; it’s resource-intensive (for example, 1-on-1 mentoring is limited by mentor
availability). Unacademy would need to maintain two positioning tracks – affordable mass
learning and premium – which can be tricky. Execution is key: charging premium means the
quality absolutely must justify the price, or reputation could suffer. Another con is that the
Indian market, outside top-tier cities, is very price-sensitive – the volume of people who can
pay a lot may still be limited, so the total addressable market for premium EdTech is not
huge. This strategy also doesn’t directly solve user growth; it is more of a short-to-mid term
revenue maximization play. Competitors could respond by undercutting (e.g., PhysicsWallah
launching its own mentorship at far lower cost), making Unacademy’s premium service look
overpriced.

Alternative 4: Global Expansion – “Go international to tap new markets.”

Unacademy could attempt to expand beyond India, exporting its model to other countries.
Regions like South Asia (Bangladesh, Pakistan), the Middle East, or Africa have similar
competitive exam structures and large student populations. Unacademy could either offer
Indian exam prep to overseas Indian diaspora (already some of that likely happens) or
launch local exam prep (for instance, university entrance in another country) by partnering
with local educators. Another angle is to offer English-language courses for global exams
(like SAT, GRE) to students worldwide, thus competing with global EdTech like Kaplan or
Coursera.

• Pros: International markets might offer a new growth frontier with

less-saturated competition. For example, an initial look at, say, Bangladesh’s EdTech scene
might reveal fewer large players; Unacademy could become a first mover with its proven
platform. If successful, this diversifies revenue geographically, reducing dependence on
Indian market cycles. It also leverages the content Unacademy already has – many Indian
exams’ syllabi overlap with neighboring countries (or Indian medical/engineering coaching
content might attract students from other countries who want to study in India, etc.). There is
also prestige and valuation benefit in being a global player, potentially attracting global
investors. Additionally, certain international markets might yield higher willingness to pay (for
instance, Gulf countries with Indian expats might pay a premium for Indian curricula
tutoring). It’s worth noting BYJU’S expanded to the US via acquisitions (Osmo, Epic), so
Unacademy might consider an inorganic approach too – acquiring a smaller EdTech in a
target country to kickstart presence.

• Cons: Expanding internationally is challenging and can be expensive. It

requires understanding foreign curricula, possibly translating content or localizing (different
languages, adapting to cultural context of learning). There are regulatory concerns –
education regulations vary, and entering a new country might require partnerships or
compliance hurdles. Marketing in a new country where the brand is unknown means high
customer acquisition costs initially. There’s also execution risk: Unacademy tried a small step
with USMLE (medical licensing exam in the US) but shut it in 5 months due to lack of traction
, indicating how tough cracking a foreign exam market can be, even one related to English
content. Given limited capital, an international push could divert funds from shoring up the
Indian business, at a delicate time. Moreover, local competitors or incumbents (even if not
EdTech, say strong public systems or local coaching traditions) might resist or be hard to
displace. The payoff of international moves may be long-term, whereas Unacademy has
immediate needs to become financially sustainable.

Alternative 5: Strategic Partnerships and B2B/B2G Deals – “Collaborate to expand reach.”

Unacademy could pivot to a strategy of partnerships rather than pure direct consumer
growth. For instance, partnering with schools, colleges, or coaching institutes to power their
online learning, or with government educational initiatives to provide content/training at
scale. This B2B (business-to-business) or B2G (business-to-government) approach might
include selling licenses of the Unacademy platform or bulk student subscriptions at a
discount to an institution.

• Pros: Partnerships can provide a large user base with relatively lower
marketing cost. If, say, a state government ties up with Unacademy to provide free exam
coaching to 1,000 top students, Unacademy may get paid a lump sum and those students
onboarded without individual sales effort. It builds goodwill and the brand as a partner of the
public sector, possibly insulating from regulatory backlash. B2B deals with private schools or
coaching centers (to use Unacademy’s tech for streaming or to use its content as
supplement) could open a new revenue line – essentially EdTech SaaS. Unacademy did
offer platform access to schools in 2020 for goodwill; formalizing that into a service could be
viable. Partnerships with companies could also be considered – for example, tie-ups with
employers for skill training of fresh hires (blending into upskilling market). This strategy
leverages others’ distribution networks: e.g., a coaching institute has physical reach and
trust in a city, Unacademy has tech and content; together they can create a hybrid program
neither could alone easily. For Unacademy, partnerships could reduce competition – turning
some potential competitors into collaborators (some offline institutes might prefer partnering
rather than building their own online infrastructure).

• Cons: The B2B/B2G model in education is notoriously slow and complicated.

Selling to government involves long tender processes, and sometimes low margins, and
there’s risk of policy changes or non-renewal after political shifts. Similarly, schools or
colleges can be bureaucratic and resistant to outside content that doesn’t align perfectly with
their curriculum. Customizing the platform for each client’s needs may increase operational
complexity. Also, institutional clients will demand high service levels – any platform downtime
could jeopardize the contract. Financially, while these deals bring in revenue, they might be
lower margin (bulk discounts) and one-off (e.g., annual contracts rather than continuous
consumer subscriptions). Unacademy also needs a dedicated enterprise sales force for this,
which is a different capability than consumer marketing. Entering partnerships might limit
direct growth too (for instance, an agreement might give an institution exclusivity in a region,
preventing Unacademy from marketing directly there). There’s also brand risk if a
partnership program fails (the partner might blame Unacademy). Lastly, focusing on
B2B/B2G could distract from the core B2C user experience if too many custom changes or
resources shift to serving external clients.

Each of these alternatives is not mutually exclusive – often a company will combine
elements. However, given limited resources and the need for a clear strategic direction,
Unacademy will need to prioritize.

Evaluation Summary:

• Core Focus appeals for short-term stability and profit but may sacrifice
long-term market presence and scale.

• Diversification offers growth potential but with high execution risk and cash
burn in the short term.
 • Premium Strategy could improve unit economics and cater to a segment
willing to pay, but it must be careful not to dilute the brand’s inclusive image and needs
careful service execution.

• Global Expansion taps new markets with potential high upside, but timing
may not be ideal given internal challenges; it’s a longer-term play that might wait until the
home base is stronger.

• Partnerships can accelerate user reach and impact with lower marketing cost,
and align with national educational goals, but they involve complex sales cycles and possible
lower margins.

Unacademy’s decision may in fact be about the right sequence and combination. For
instance, focus on core and achieve profitability first, then with a stronger financial footing,
pursue diversification or global expansion later (“earn the right to expand”). Or pursue a
premium upsell in parallel with core focus to quickly improve financials, while also exploring
selective partnerships that don’t drain focus.

The decision also depends on the founders’ vision and investor expectations. As a
high-profile startup, completely forgoing growth (core-only strategy) might displease
investors aiming for a larger market capture. Conversely, in the current climate, investors are
more appreciative of sustainable models.

5. Conclusion & Learning Outcomes

In conclusion, Unacademy’s journey encapsulates the opportunities and challenges of the

EdTech sector in emerging markets. Having achieved a meteoric rise to unicorn status by
transforming how students prepare for exams, Unacademy now faces the test of strategic
maturity – transitioning from an expansion-first startup to a sustainable, market-leading
enterprise. The analysis suggests that while the external environment remains favorable in
the long run (young demographics, increasing digital adoption, supportive policies),
short-term turbulence requires a recalibration of strategy.

Recommended Strategic Direction: Unacademy should prioritize sustainable growth by

balancing focus on core strengths with selective expansion. In the immediate term, a prudent
approach would be to consolidate core exam-prep operations and drive toward profitability –
essentially earning the right to play in other areas. This means strict cost management,
improving monetization (through modest price optimizations and premium upsells where
appropriate), and ensuring its flagship offerings (like UPSC, IIT-JEE coaching) set the
benchmark for quality and results. At the same time, Unacademy can prepare for the next
wave of growth by pursuing low-cost experiments in promising areas (e.g., pilot partnerships
with a few schools or a small-scale launch in one neighboring country) without committing
excessive resources. As financial stability improves, it can gradually scale up successful
adjacencies – for instance, reviving its presence in K-12 or expanding offline centers in a
measured way, given that hybrid learning could be a durable trend.

Importantly, Unacademy should leverage what differentiates it: the power of its educator
community and technology. Investing in educator development (so they produce top rankers)
will pay dividends in reputation. Technologically, continuing to personalize learning and
perhaps introducing AI-driven features (like adaptive study plans or AI tutors for doubt
clearing) can keep Unacademy a step ahead in student outcomes, which ultimately drives
both retention and word-of-mouth growth.

Learning Outcomes: This case yields several key lessons for students of business strategy
and entrepreneurship:

• Growth vs. Profitability Trade-off: Unacademy’s case illustrates the classic

startup dilemma of balancing hyper-growth with sustainable unit economics. During
favorable market conditions (e.g., COVID-induced demand, easy VC funding), the company
prioritized growth, which was appropriate to establish market leadership. However, when
conditions changed, it had to pivot sharply toward efficiency. The lesson is the importance of
agility and timing – knowing when to switch gears from expansion to consolidation. A related
takeaway is that high valuations and fundraising are not ends in themselves; ultimately, a
business must justify its value with a path to profitability.

• Adaptation to External Environment: The PESTLE analysis showed how

external factors like technology infrastructure and social acceptance can rapidly shift.
Unacademy rode a positive wave (internet boom, pandemic push), but also had to adapt to a
funding winter and return of offline schooling. Businesses should continuously scan their
environment and be ready to adapt strategy. Regulatory foresight is also crucial in sensitive
sectors like education – proactive self-regulation (as Unacademy did via the EdTech
Consortium) can pre-empt stricter government action and shows how industry context must
shape company policies.

• Competitive Strategy in Emerging Markets: In markets with low entry barriers

and many competitors, differentiation is key. Unacademy built differentiation through a large
educator network and live interactivity, as opposed to purely recorded content. The five
forces analysis underlined how critical it is to create some form of competitive moat –
whether through network effects, brand loyalty, or proprietary technology – in the face of high
rivalry and easy substitutes. Another lesson is that competition can come from unexpected
places (a YouTube teacher becoming a unicorn competitor, PhysicsWallah) – thus
companies should watch not just existing rivals but also potential disruptors from adjacent
spaces or different models.

• Role of Business Model Innovation: Unacademy experimented with various

models (B2C subscriptions, B2B services, free+ads, etc.). The case demonstrates that
business model innovation (like Unacademy’s freemium approach, or pivoting to hybrid
offline) can be as important as product innovation. Students can see how aligning the
revenue model with customer needs and willingness to pay is vital. For example,
Unacademy realized Indian students might not pay high one-time fees, so a subscription
model with monthly payment options made the service accessible. Adapting the model when
scaling (introducing Iconic tier, exploring enterprise deals) is part of staying financially viable.

• Strategic Use of Partnerships and M&A: Unacademy’s story shows both

successful and less successful uses of acquisitions and partnerships. Its acquisition of
PrepLadder strengthened its position in a niche (medical PG exams), a positive example of
inorganic growth to complement organic growth . Conversely, some acquisitions that didn’t
align with its core (like TapChief for professional gigs) were harder to integrate. The lesson is
that M&A should fit into a coherent strategic vision and not just chase growth for growth’s
sake. Partnerships (like with state governments or content collaborations with celebrities)
can amplify a company’s reach, but they must be chosen carefully to enhance, not dilute, the
brand.

• The Importance of Operational Excellence and Culture: A less flashy but

crucial takeaway is how operational and HR issues can make or break strategy. Unacademy
had to deal with layoffs, which tested its culture. The way leadership handled it (transparent
communication, shared sacrifice by executives) provides insight into crisis management in a
startup context . Operationally, scaling up so many concurrent live classes required
back-end excellence – reminding us that in tech businesses, the user experience (smooth
classes, bug-free app) is as important as the content. Strategy formulation is futile without
execution capability.## 6. Case Exhibits & References

References:

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Chaudhary, B. (2022, November 4). Edtech startup PhysicsWallah’s FY22 net profit jumps
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