'The plan is profitability first, followed by IPO’

With an eye on profitability, edtech firm Unacademy is charting a steady path forward as it competes with industry heavyweights in a rapidly evolving market.

- Gaurav Munjal

Co-founder & CEO Gaurav Munjal, in an interview with Anees Hussain, discusses the firm's pivot to offline learning and plans for sustainable growth. Excerpts:

In the past, you've been vocal about staying online-only. But today, Unacademy is aggressively expanding offline. What has changed?

When we launched in 2015, offline wasn't even on our radar. But as we listened to our customers, especially Class 11 and 12 students, it became clear that some preferred offline learning. By 2024, offline contributed 40% of our revenue, so it's now a major part of our strategy. Initially, there was resistance, but we adapted, and now we're very bullish on it.

How has the online learning business performed in the meantime?

Our goal with online was profitability, which meant making tough choices. We shut down certain categories like SSC and state PSC exams, focusing instead on long-tail brackets like JEE, UPSC, CA and CAT. This led to a 20% degrowth in 2024, but we're expecting some growth in 2025.The priority for online remains staying close to profitability and we're on track.

Isn't the offline push a capexheavy initiative for a traditionallyonline company like Unacademy? Not really. Offline's challenges are more about operating expenses like rent and educator costs, rather than capital expenditure. The key is running the centres efficiently, producing results and ensuring quality teaching.

Does your online business provide an advantage in identifying locations for offline centres?