Exclusive: Edtech Giant Unacademy Expands ESOP Pool Size By 2,401X

SUMMARY

Edtech giant Unacademy has expanded its ESOP pool size by 2,401X to 238 Mn options

The development comes on the heels of Unacademy laying off almost 600 employees

Unacademy is also allotting bonus shares to its 36 investors, including founders and directors

India’s second most valued edtech startup Unacademy has expanded its ESOP pool size by 2,401X. The edtech startup, which was recently in the news for layoffs, has increased its ESOP pool size to 238 Mn options from 99K options earlier.

In an extraordinary general meeting held on April 14, 2022, Unacademy’s board passed a resolution to amend the ESOP policy of the startup. All the employees of the startup will benefit from the increase in ESOP pool.

Inc42 couldn’t independently verify the worth of the ESOP pool size. As per media reports, Unacademy ESOP Pool size was last worth $400 Mn. An Unacademy spokesperson declined to comment on the development over an e-mail.

The startup is also allotting a total 24.7 Mn Bonus compulsorily convertible preference shares (CCPS) to its 36 investors, including founders and directors. The startup has also increased its authorised share capital from INR 84.9 Lakh to INR 243.4 Cr.

This year, Unacademy has laid off around 1,000 employees from various roles. The startup has let go off employees who were on a permanent pay rolls and also on a contractual basis. Inc42 was the first to report on the development.

Founded in 2015 by Gaurav Munjal, Hemesh Singh, and Roman Saini, Unacademy claims to have more than 50,000 registered educators and more than 62 Mn learners. It offers learnings in 14 languages across 5,000 cities. BYJU’s, on the other hand, the country’s most valued startup at $22 Bn claims to have enrolled 100 Mn learners on its platform. Last month, Inc42 had exclusively reported that Unacademy have forayed into the US with its medical test preparation courses.

The startup’s losses jumped 6X to INR 1,537.4 Cr in FY21 from INR 258.6 Cr in FY20. Its expenses shot up by 349% to INR 2,029.9 Cr in FY21 as compared to INR 452 Cr it incurred in FY20.

The startup has also seen its revenue from operations soar by 514.6% in FY21. It clocked INR 397.6 Cr from operations revenue in FY21, a major uptick from INR 64.7 Cr it posted in FY20.