Unacademy Pivots to Franchise Model, Exits Company-Run Centers After Failed upGrad Talks

• 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, reportedly due to disagreements over valuation and deal structure.
• The franchise model allows Unacademy to remain asset-light and capital-efficient, focusing on academics, technology, curriculum, and brand, while local operators manage day-to-day operations.
• The transition is expected to be completed by April, aiming for a healthier cost structure and reaffirming Unacademy's commitment to being an "online first" company.
• Several core verticals like UPSC, NEET PG, CAT, PrepLadder, and Graphy have become contribution-margin or cash-flow positive, with significant cost reductions in test-prep burn.

Why It Matters: Unacademy is exiting company-run offline centers for a franchise model, focusing on online strengths and cost efficiency.