Unacademy Launches ₹50 Crore ESOP Buyback

Unacademy, an edtech startup, has launched a ₹50 crore employee stock ownership plan (ESOP) buyback program to provide liquidity to its workforce. Co-founder Unacademy announced the initiative, noting that a select group of employees will receive substantial payouts, with some earning over ₹1 crore. This buyback comes as Unacademy undergoes a strategic reset, including transitioning from company-owned offline learning centers to a franchise model to reduce costs. The company's valuation has significantly decreased from its peak of $3.5 billion in 2021 to below $500 million. Recent acquisition discussions with UpGrad and K-12 Techno Services did not materialize due to valuation differences. Unacademy has also revised its ESOP exercise terms, initially shortening the window for former employees before reinstating a longer period. This buyback is seen as an effort to reward and retain talent amidst a challenging market environment for edtech firms.