Unacademy's Munjal Clarifies ESOP Conversion for Ex-Staff Amid Valuation Drop, M&A Talks

• Unacademy co-founder Gaurav Munjal clarified the ESOP conversion offer for former employees amidst a significant valuation markdown and potential acquisition.
• The move aims to preserve value for ex-staff, as an all-stock M&A deal with liquidation preferences could otherwise make ESOPs worthless.
• Former employees can convert vested ESOPs into equity at a Rs 2,650 crore valuation, a sharp drop from the $3.4 billion peak.
• The company is in M&A discussions, reportedly with UpGrad, for an all-stock deal, prompting this ESOP window open until January 19, 2026.
• Munjal took ownership of the difficult situation, acknowledging it wasn't the desired outcome for investors or employees.

Why It Matters: Unacademy offers ex-employees ESOP conversion to retain value amid M&A talks and valuation markdown.