Unacademy Franchise Model: Company’s New Plan, Closing Offline Centers and Shifting to a Franchise Model

Online education platform Unacademy is now closing its company-owned offline learning centers and preparing to shift to a franchise model. The company’s co-founder and CEO, Gaurav Munjal, informed employees about this decision in an email on Wednesday (January 14). This decision comes just days after the proposed merger deal with upGrad fell through.

Unacademy was founded in 2015. This is the first time such a decision has been made. The company’s objective behind this decision is to reduce losses and increase profitability.

What is the company’s new plan?

In the coming months, Unacademy will convert all its company-operated offline centers to a franchise model. Local operators will then manage the daily operations of these centers. Unacademy will provide academic, technology, curriculum, and brand support. Company CEO Gaurav Munjal stated that this model has already proven successful. It is expected that these changes will be completed by April 2026.

This decision will make the company profitable

Gaurav Munjal explained that in recent years, the company has created several excellent online learning products, which are already benefiting the company. As a result, the contribution margin of several Unacademy verticals, such as UPSC, NEET PG, and CAT, has become positive. This decision is expected to further increase the company’s profitability. Gaurav Munjal said, “2026 will no longer be a year of survival, but a year of growth.” This step is crucial in making the company leaner, more profitable, and more focused on online learning.