Unacademy Launches Rs 50 Crore ESOP Buyback to Support Employee Liquidity

Unacademy Initiates Rs 50 Crore ESOP Buyback to Offer Liquidity to Employees

Company Overview

Unacademy, a leading edtech firm, has announced the initiation of a Rs 50 crore employee stock ownership plan (ESOP) buyback. This move comes as the company continues to recalibrate its operations, focusing on its core test-prep business and improving sustainability in the edtech sector.

Key Details

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• The ESOP buyback aims to provide liquidity to current and former employees, addressing concerns about the lack of near-term exit events.
• A cash pool has been carved out for employees, with eight individuals set to receive over Rs 1 crore each, 17 receiving over Rs 50 lakh, and 38 getting more than Rs 10 lakh.
• Eligible participants will be contacted over the next few weeks to complete the process.

Industry Context

Unacademy's ESOP buyback comes as the company transitions away from directly running offline coaching centres and moves towards a franchise-led approach to reduce capital intensity. The edtech sector has been experiencing a slowdown, with several companies undergoing a broader reset, including Unacademy, which was last valued at $3.4 billion at its peak.