Overview
Unacademy has closed its offline learning centres across multiple cities, marking a significant strategic shift for the edtech major as it recalibrates operations amid a prolonged funding winter. The decision reflects Unacademy’s renewed focus on strengthening its core online education business while tightening costs.
The move comes at a time when several edtech firms are re-evaluating capital-intensive offline models, as profitability and sustainable growth take priority over rapid expansion.
Offer Snapshot
- Action taken: Closure of offline learning centres
- Affected segment: Physical classroom-based coaching centres
- Reason: Cost rationalisation and strategic realignment
- Focus going forward: Core online learning platforms
- Status: Online courses and digital offerings continue
Unacademy has not disclosed the exact number of centres shut, but the closures span multiple regions.
Financials
The shutdown of offline centres is part of Unacademy’s broader effort to improve financial discipline and extend its cash runway.
Key financial considerations behind the move include:
- High fixed costs associated with physical centres
- Lower-than-expected scalability of offline operations
- Increased focus on optimising burn and unit economics
- Channeling resources toward profitable digital segments
The company has been actively cutting costs over the past year, including layoffs and business restructuring.
Business Highlights
Unacademy rose to prominence as a leading online education platform catering to competitive exams and skill-based learning.
- Strong presence in test preparation for UPSC, IIT-JEE, NEET and other exams
- Large base of educators and learners on its digital platform
- Subscription-led revenue model with nationwide reach
- Flexibility and scalability through online-first delivery
The offline centres were introduced to complement online learning but required significant capital and operational oversight.
Use of Proceeds
As the offline business is being wound down, internal capital and operational bandwidth are expected to be redirected toward:
- Enhancing core online course offerings
- Improving platform technology and learning experience
- Strengthening educator partnerships
- Supporting long-term sustainability of the digital model
This shift aligns with Unacademy’s goal of becoming a leaner and more focused organisation.
Risks
While the strategic pivot may help reduce costs, it also presents certain risks:
- Potential loss of students preferring classroom-based learning
- Increased competition in the crowded online edtech space
- Brand perception challenges following repeated restructuring
- Dependence on digital adoption and subscription renewals
Execution of the online-only strategy will be critical to future growth.
What to Watch Next
- Further cost-cutting or restructuring announcements
- Growth trends in Unacademy’s online subscriptions
- Strategic pivots toward new revenue streams
- Broader recovery signals in India’s edtech sector
Unacademy’s decision underscores a larger industry trend, where edtech companies are stepping back from offline expansion to focus on sustainable, digital-first growth.