Unacademy Pivots to Franchise Model, Exits Company-Run Centers After upGrad Deal Collapse

• Unacademy will transition from company-operated offline centers to a franchise-led model, as announced by founder Gaurav Munjal in an internal email.
• This strategic shift follows the collapse of acquisition talks with upGrad due to disagreements over valuation and deal structure.
• The new franchise model aims for a healthier cost structure, with local partners handling operations while Unacademy focuses on academics, technology, and curriculum.
• The company plans to complete this transition by April and will revert to an "online-first" approach, similar to its 2015 origins.
• Unacademy has significantly cut its test-prep burn, and several core verticals like UPSC, NEET PG, and CAT are now contribution-margin positive.

Why It Matters: Unacademy is shifting to a franchise model for offline centers and an online-first strategy after upGrad deal failed.