Unacademy Halts ESOP Changes After Ex-Employee Backlash; Acquisition Talks Loom

• Unacademy paused proposed amendments to its ESOS 2018 following strong pushback from former employees.
• Former staff objected to exercising ESOPs at a sharply lower valuation (Rs 2,650 crore vs. $3 billion peak), citing immediate tax liabilities on illiquid shares.
• CEO Gaurav Munjal stated the changes aimed to protect employees in an all-stock merger, preventing unexercised ESOPs from lapsing.
• Employees found the compressed exercise window and lack of liquidity visibility financially stressful, shifting disproportionate risk onto them.
• The decision comes amid reported acquisition talks with rival edtech upGrad, potentially valuing Unacademy at $300-400 million.

Why It Matters: Unacademy temporarily halts controversial ESOP changes, easing ex-employee concerns amid acquisition talks.