Business ESOP buyback

Unacademy Initiates 50 Crore INR ESOP Buyback

Analysis based on 8 articles · First reported Feb 27, 2026 · Last updated Feb 27, 2026

Sentiment

Attention

Articles

Market Impact

Direct

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Market Impact

The ESOP buyback by Unacademy provides a rare liquidity event for employees in a subdued startup ecosystem, potentially boosting morale and talent retention. While Unacademy's valuation has significantly decreased, its strategic reset and focus on profitability could positively impact investor confidence in the long term.

EdTech Venture Capital

Event Summary

Edtech firm Unacademy has initiated a 50 crore INR employee stock ownership plan (ESOP) buyback, aiming to provide liquidity to current and former staff. This move comes as Unacademy undergoes a strategic reset, recalibrating operations, cutting costs, and narrowing its focus to core online test-prep business. The company recently reversed a controversial ESOP policy that had reduced the exercise window for former employees. Co-founder and CEO Unacademy announced the buyback, noting that the board carved out a cash pool for employees despite the company's valuation being significantly less than its last fundraise. The buyback will result in payouts for a section of employees, with some receiving over 1 crore INR. Unacademy has also transitioned from company-operated offline centers to a franchise-led approach and dropped plans to hive off its AirLearn vertical, with co-founders Unacademy and Unacademy remaining at the firm. The company's net losses have narrowed, and cash burn has significantly plummeted.

Key Actions

100 Unacademy initiated ESOP buyback

80 Unacademy transitioned offline centers to franchise model

70 Unacademy reversed controversial ESOP policy

60 Unacademy held acquisition talks UpGrad

20 UpGrad acquired 90% stake Internshala

Entities Involved

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Unacademy

Unacademy initiated a 50 crore INR ESOP buyback to provide liquidity to current and former employees. This move aims to reward and retain talent amidst a challenging edtech market and a significantly reduced valuation. The company is also undergoing a strategic reset, shifting to a franchise model for offline centers and focusing on online segments.

Importance 100 Sentiment 20

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Unacademy

Unacademy, co-founder and CEO of Unacademy, announced the ESOP buyback and expressed gratitude to the board. He has been instrumental in leading Unacademy's strategic reset, including the shift to a franchise model and the reversal of a controversial ESOP policy.

Importance 90 Sentiment 15

per

Unacademy

Unacademy, co-founder of Unacademy, framed the ESOP buyback as a gesture of goodwill towards employees who stayed with the company during a difficult period. He is staying with the firm after plans to step down did not materialize.

Importance 40 Sentiment 10

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UpGrad

UpGrad was in acquisition discussions with Unacademy, but the talks fell through due to disagreements on valuation terms. UpGrad has continued its acquisition strategy, recently acquiring a 90% stake in Internshala.

Importance 30 Sentiment 0

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AirLearn

AirLearn, Unacademy's AI-led language learning vertical, has seen its annual recurring revenue surge. Plans to hive off AirLearn have been dropped, with Unacademy's co-founders staying with the firm.

Importance 20 Sentiment 10

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PrepLadder

PrepLadder, a subsidiary of Unacademy, has achieved full-year cash flow positivity, contributing to Unacademy's strategic reset.

Importance 15 Sentiment 10

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-graphy

-graphy, a subsidiary of Unacademy, has achieved full-year cash flow positivity, supporting Unacademy's focus on profitable online segments.

Importance 15 Sentiment 10

+ 2 more entities View on Dashboard

Relationships

Unacademy related ↔ Unacademy

Temasek Holdings related ↔ Unacademy

PrepLadder related ↔ Unacademy

-graphy related ↔ Unacademy

AirLearn related ↔ Unacademy

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