Unacademy CEO Gaurav Munjal denies acquisition rumours, Physics Wallah's Alakh Pandey responds

Gaurav Munjal responded with a 'thank you' to Alakh Pandey's comment. (Images: Twitter)

In a response to swirling rumours, Unacademy co-founder and CEO Gaurav Munjal categorically denied speculation about a potential acquisition by Allen Career Institute. Reports had claimed the edtech giant was negotiating an $800 million deal, marking a sharp decline from its $3.4 billion valuation in 2021. Munjal took to LinkedIn on December 7 to address the issue, branding the rumours as unfounded.

“I have said this before, I’ll say it again. This year will be Unacademy’s best in terms of growth in the offline business and overall unit economics. We have many years of runway. We are building Unacademy for the long run. We are not doing any sale or M&A. Ignore the rumors,” Munjal posted.

Highlighting the company’s achievements, Munjal shared a “Year in Review,” noting a 30% growth in its offline centres, a significant improvement in unit economics, and a 50% reduction in cash burn at the group level.

With $170 million in cash reserves and no debt, Unacademy reportedly has a financial runway exceeding four years. He also spotlighted the growth of subsidiaries, including Graphy’s 40% profitable expansion and Airlearn’s remarkable $400,000 ARR within months of its US launch.

However, the saga took a turn when Physics Wallah Founder and CEO Alakh Pandey chimed in with a comment on Munjal’s post. “This sounds so good. I miss the old times of fierce competition. I am waiting for the same. It is only when we compete, students get more options. Wish you luck,” Pandey remarked.

Pandey’s response, while polite, carries the weight of history. Known for his humble beginnings earning just Rs 5,000 a month, Pandey famously declined Unacademy’s Rs 75 crore acquisition offer to remain independent.

This decision paved the way for Physics Wallah’s meteoric rise, transforming from a YouTube channel into a unicorn valued at $2.8 billion by 2024.

While Unacademy focuses on expanding its offline presence and refining unit economics, Physics Wallah emphasises on affordability and access.