Unacademy Announces Massive ESOP Payouts Despite Lower Valuation

Edtech major Unacademy has announced a ₹50 crore ESOP (Employee Stock Ownership Plan) buyback program.

This initiative, confirmed by co-founder Gaurav Munjal on February 27, 2026, aims to reward long-standing employees despite the challenging valuation environment currently facing the Indian edtech sector.

A Multimillionaire Maker Event

The buyback is set to create substantial wealth for a dedicated segment of the company’s staff.

According to Gaurav, the payout structure is designed to benefit both current and former employees:

8 employees are expected to earn over ₹1 crore each.
17 employees will receive payouts exceeding ₹50 lakh.
38 employees are likely to earn upwards of ₹10 lakh.

“Grateful to the board for carving out a cash pool for the employees, even though the valuation is significantly lower than our last fundraise,” Gaurav stated, highlighting the company’s commitment to its “common shareholders” (employees) over traditional liquidation preferences that usually favor investors.

Strategic Timing Amidst a “Sectoral Reset”

This liquidity event comes at a critical juncture for Unacademy.

After a post-pandemic boom that saw its valuation peak at $3.4 billion in 2021, the company is now operating at a more conservative valuation of approximately $300 million to $500 million.

The buyback follows a series of aggressive cost-cutting measures.

Unacademy recently shifted from company-operated offline centers to a franchise-led model to improve unit economics and reduce cash burn.

These moves have proven effective; the company narrowed its EBITDA losses by 38% in FY25 and maintains a healthy cash reserve of over ₹1,200 crore.

Unacademy Protecting Employee Equity

The initiative is also seen as a protective measure following recent amendments to the company’s ESOP scheme.

By providing a 30-day window for former employees to exercise their vested options and providing this buyback, the leadership is ensuring that employee stock does not become “zero” during potential M&A activities.

This provides a tangible exit for staff at a time when secondary market opportunities are scarce.

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