Weekly Wrap-Up - Gaurav Munjal: Lone Wolf of Indian Edtech

Good Afternoon, Dear reader,

In bustling Indian startup scene, we may not have disruptor like Elon Musk, but we do have our own maverick founders. Chief among them is Gaurav Munjal, mercurial co-founder of Unacademy.

Munjal isn’t here to make friends. Amidst swirling rumors of impending sale or merger, he remains as defiant as ever, wielding his social media presence like megaphone. Unlike his competitor Byju Raveendran, who prefers curated & managed media appearances, Munjal thrives on being media-aggressive. He regularly shares company metrics, voices his opinions, & publicly throws shade at other founders. There's Musk-adjacent quality to his approach.

Recently, Morning Context reported that Unacademy might be up for sale or merger. Munjal, true to form, came out swinging against report. He didn’t directly deny rumor but reiterated his favorite refrain: “Unacademy will have its best year.” This persistent optimism is cornerstone of his public persona.

Edtech Roller Coaster

Edtech in India has never been profitable sector. Companies vied for same sliver of market, burning through capital faster than expected. Byju's, for instance, spent heavily on acquisitions to outcompete others. sector was chaotic mess until pandemic-fueled growth spurt ended. Most edtech companies stopped talking about profitability.

Except Munjal

Munjal has outlasted many of his competitors. While Byju Raveendran & Vamsi Krishna of Vedantu have faded from spotlight, Munjal continues to lead Unacademy. He's faced new wave of competitors like Physicswallah & offline test prep giants like Allen & Aakash. This defiance makes Munjal unique figure in Indian edtech, albeit lonely one.

Choosing Profit Over People

Unacademy has significantly downsized, shrinking its workforce from over 5,000 to below 3,000. Layoffs have been part of this downsizing, & Munjal has made it clear that profitability takes precedence over people. Despite mea culpa emails & Slack messages, company quickly returns to business as usual.

Munjal often claims he has best team working on best products, but his actions suggest that everyone is replaceable as long as Unacademy stays in game. In conversation with his mentor & investor Shailendra Singh, Munjal declared that he never aimed to build “good company.” It was either to be great company or complete failure.

A detailed report by Sriram Mani & Chandra R Srikanth for Moneycontrol highlights Unacademy's top-down culture, where few senior leaders make all decisions. Employees often face intense scrutiny & high expectations, including working Saturdays & undergoing public performance reviews. 

Building for Consumer Experience Over Education

Unacademy embodies “move fast, break things” ethos in edtech. Munjal’s focus has been on creating exceptional consumer experience rather than solely on education. former Unacademy exec revealed that Munjal aimed to build best delivery engine & drive traffic through top tutors. 

This approach sets Munjal apart from teacher-founders like Raveendran & Krishna, whose primary goal was to establish educational brands. Munjal's objective is to be known as innovator & entrepreneur.

Last Man Standing

Now, Munjal faces new kind of competition. Physicswallah (PW), for instance, became unicorn by catering to students who couldn't afford Unacademy's offerings. PW’s growth mirrors Unacademy's initial journey from YouTube to paid subscriptions.

Munjal is also venturing into offline market, competing with traditional test-prep companies like Allen. In physical classroom business, success hinges on student results rather than consumer journey. Yet, Munjal hasn’t abandoned his love for online consumer experience. Unacademy's recent foray into language learning, competing with Duolingo, is testament to his willingness to experiment.

Munjal has said he has shored up capital to explore new areas without worrying about running out of money. This could lead Unacademy to find its product-market fit or simply serve as vanity metric to showcase its design & product capabilities.

Either way, Munjal is on this path alone. He has coterie of like-minded founders who share his drive to win at all costs. He’s keenly attuned to market opportunities, such as profitable offline coaching business. As edtech founder, Munjal is now in category of his own.

Unacademy has survived despite—and because of—Munjal’s relentless pursuit of success, even if it means being lone wolf of Indian edtech.