Unacademy grew from an educational YouTube channel into one of India's largest edtech platforms.
Explore the story of Unacademy founders Gaurav Munjal, Roman Saini, Hemesh Singh, and Sachin Gupta, from a YouTube channel to a billion-dollar edtech company and its 2026 acquisition by upGrad.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy
Quick Facts
| Founders | Gaurav Munjal, Roman Saini, Hemesh Singh, Sachin Gupta |
| Prior Ventures | Gaurav Munjal – Software Developer, Directi; Roman Saini – IAS Officer, AIIMS graduate; Hemesh Singh – Co-Founder/CTO, Flatchat |
| Role | Co-Founder and CEO, Unacademy |
| Founded | 2015 |
| Sector | EdTech |
Introduction
Unacademy began not as a company but as a YouTube channel. In 2010, Gaurav Munjal started uploading tutorial videos to help fellow engineering students prepare for exams, and by 2015, that side project had grown into a full startup, co-founded alongside Roman Saini, Hemesh Singh, and Sachin Gupta. (StartupTalky) Eleven years later, Unacademy became one of India’s most closely watched edtech consolidation stories, agreeing to an all-stock acquisition by rival upGrad in March 2026. (TechCrunch)
The Unacademy Story
Before founding Unacademy, Munjal worked as a software developer at Directi, while Saini had already qualified for the AIIMS medical entrance exam at 16 and later cleared the UPSC exam to become an IAS officer. (buildd) Singh, meanwhile, brought technical leadership experience as co-founder and CTO of Flatchat. (Forbes India)
In September 2015, Munjal and Singh formally incorporated Sorting Hat Technologies, the parent entity behind Unacademy, and Saini soon left his IAS post to join full-time. (Forbes India) The platform initially offered free educational content before introducing Unacademy Plus, a paid subscription product, in 2019, expanding into 14 Indian languages beyond English. (StartupTalky)
The pandemic accelerated Unacademy’s growth sharply, and the company rode that momentum to a peak valuation of $3.44 billion following a $440 million Series H round in 2021, before a further raise pushed valuation reports as high as $10.5 billion. (Avendus Capital; eBlogTalk) However, as students returned to in-person classrooms post-pandemic, demand for online-only learning cooled sharply, and Unacademy went through multiple rounds of layoffs affecting roughly 2,000 employees since 2022. (StartupTalky)
Business Model
Unacademy earned revenue primarily through subscriptions and test-prep services across its network of brands:
| Revenue Stream | How It Works |
|---|---|
| Subscriptions (Unacademy Plus) | Paid access to live classes and structured courses for competitive exams |
| Test-prep brands | Revenue from acquired platforms including WiFiStudy, PrepLadder, and Kreatryx |
| Franchise partnerships | Fees from franchised offline centres following its 2026 pivot away from company-run centres |
| Creator ecosystem | Revenue share with independent educators on the platform |
(Sourced from Wikipedia and The PIE News)
Funding and Acquisition History
| Round/Event | Year | Amount | Key Investors |
|---|---|---|---|
| Series C | 2018 | $21 million | Sequoia India, SAIF Partners, Nexus Venture Partners |
| Series F | Sep 2020 | $150 million | SoftBank, General Atlantic, Sequoia Capital |
| Series H | Aug 2021 | $440 million | Temasek, SoftBank, Tiger Global, General Atlantic |
| Acquisition (share swap) | Mar 2026 | ₹2,055 crore (~$218 million, all-stock) | upGrad (100% acquisition) |
(Sourced from TechCrunch and BestMediaInfo)
Overall, Unacademy raised approximately $854 million across 13 funding rounds, reaching a peak valuation of $3.44 billion in 2021. (TechCrunch) By the time of its 2026 acquisition, that valuation had fallen more than 85%, with CEO Gaurav Munjal himself putting the company’s value below $500 million. (TechCrunch)
Revenue and Growth
| Metric | FY24 | FY25 |
|---|---|---|
| Operating Revenue | ₹988.4 crore | ₹826.3 crore (down 16%) |
| Net Loss | Higher base | ₹436 crore (down 31%) |
(Sourced from The PIE News)
Notably, despite the revenue decline, Unacademy narrowed its EBITDA loss by 38% to ₹305 crore in FY25 through cost-cutting, including exiting company-run offline centres in favour of a franchise model in January 2026. (The PIE News; StartupTalky) The company also retained over $100 million in cash reserves heading into the upGrad deal. (TechCrunch)
Unacademy vs Competitors
Unacademy competed with BYJU’S, Vedantu, and PhysicsWallah in India’s test-prep and K-12 edtech space. (StartupTalky) Notably, PhysicsWallah has taken a markedly different path, turning profitable and completing a strong public market debut, a contrast that has been widely cited alongside Unacademy’s acquisition as evidence of a broader edtech sector reckoning.
Key Takeaways
- Gaurav Munjal, Roman Saini, Hemesh Singh, and Sachin Gupta founded Unacademy in 2015, building on a YouTube channel Munjal started in 2010.
- The company reached a peak valuation of $3.44 billion in 2021 after raising roughly $854 million across 13 rounds.
- In March 2026, Unacademy agreed to a 100% share-swap acquisition by upGrad valued at approximately ₹2,055 crore.
- FY25 revenue fell 16% to ₹826.3 crore, though losses narrowed 31% to ₹436 crore through cost discipline.
- The company competed with BYJU’S, Vedantu, and PhysicsWallah in India’s edtech market.
FAQs
Who founded Unacademy?
Gaurav Munjal, Roman Saini, Hemesh Singh, and Sachin Gupta founded Unacademy in 2015.
Is Unacademy still an independent company?
It agreed to a 100% share-swap acquisition by upGrad in March 2026, with founder Gaurav Munjal continuing to lead Unacademy’s products post-acquisition.
How much funding did Unacademy raise?
Approximately $854 million across 13 rounds, reaching a peak valuation of $3.44 billion in 2021.
Who were Unacademy’s competitors?
BYJU’S, Vedantu, and PhysicsWallah in India’s edtech and test-prep market.
© The Founder Nation | Written by TFN Research Desk
