How Unacademy Franchise Is Contributing To The Growth Of Edtech In India
The Edtech industry has witnessed unprecedented growth over the last couple of years due to the interplay of several factors. The highest contributing factor, however, is the timing. With the pandemic at its peak, offline centers closed down, and the dawn of Edtech happened on a gigantic scale. Unacademy, one of the earliest Edtech startups in India, is highly successful today due to its consistent phase-by-phase expansion model. To understand the growth of Edtech in India and how the Unacademy franchise is shaping this industry, we have to take you through its journey over the years.
Unacademy franchise inception – retail store launches
Unacademy launched its app in 2015 and started gaining prominence in 2017 when its app learner count reached 1 million. The brand has grown immensely since then, reaching a valuation of over $1 billion. The growth is attributable to its faculty selection, multiple free options, and stunning brand associations. After becoming one of the most prominent names in the education industry, Unacademy took to a new route previously untouched by other Edtech companies – the retail store route.
The first store was launched in Delhi in March 2022, followed by successive stores in April, and by June, all stores brought in monthly revenue exceeding INR 1 Cr.
Reasons why the stores were well-received
The offline stores were able to ensure what telesales calls could not. Visiting those centers was a reliable and sure-shot way for parents and learners to resolve their doubts and select what was best for them. These online stores also shined a light on the lesser-known options offered by Unacademy. This move proved to be diabolical for the company because a fresh wave of learners hit the platform, and subscribers to its paid plans increased. The prominence of these stores, customer trust, and holistic information contributed to creating higher brand revenue.
Creating a new stepping stone- the Unacademy franchise model
The creation of a franchise model further enhanced Unacademy’s contribution to the growth of Edtech in India. Let’s explore Unacademy’s model in detail. Their franchise model requires a low one-time capex of as low as INR 12 lakhs. The inventory expense is zero, allowing them to cut significant expenses. Getting an Unacademy franchise is great for a franchisee because of the monthly reimbursable marketing budget of INR 15,000. The franchise fee it charges is INR 1 lakh plus GST. A security deposit of INR 2 lakhs has to be made, which is refundable after 2 years of the lock-in period. The commission value shared with the franchisee partner is 15% of the revenue made.
4 ways the Unacademy franchise is changing the Indian Edtech scene:
Here are some ways the Unacademy franchises are helping India learn.
Greater access to resources
More educational franchises mean greater access to educational resources for the general public. Easy availability of syllabus modules, question banks, and test series are all very recent developments. Resources are no longer geographically restricted, all thanks to the boom of Edtech. Every learner can chase their dreams from the comfort of their home. This access translates to aspirants saving a lot of time and effort. The bar for the minimum facilities regarding learning access has risen now.
Access to direct mentorship
One of the ways Unacademy stands out is by providing direct mentorship. Edtech was earlier seen as a field with a transactional relationship with students rather than an actual one. With mentors becoming popular and gaining relevance, Edtech became humanized, and students can connect with Unacademy on a more personal level. This connection opened up new avenues for growth because the major worry associated with online courses was now rooted out.
Organized and systematic online preparation
Another way Unacademy is making significant Edtech growth contributions is by changing the online education system into a more systematic and organized one. Starting free channels that live stream on a regular schedule and conducting revision and question-solving sessions was never done before. All this content was given for free and helped generate brand trust. Organizing a messy industry worked favorably for Unacademy. Once it attained mainstream relevance, plus subscriptions were rolled out, and the company entered a new space with the Unacademy franchise business.
Changing the way, we learn
The changes we discussed above gave rise to a different model altogether that wasn’t tried on a larger level and was heavily unorganized. The model developed now will be the standard for the next decade of Edtech. Matching the quality and maintaining consistency are significant challenges companies can only ace in a long-term game. Therefore, the next obvious step after establishing the new model was to plant seeds of expansion. Hence, the Unacademy franchise model came into being, and Unacademy plans to expand to 50 stores by the end of the first quarter of 2023. This will create INR 150 Cr extra revenue for the company and directly contribute to the growing Edtech space in India.
Unacademy is one of the few Edtech companies that has stood the test of time due to its evolving strategies and good timing. The utilization of the online space created the first phase of expansion. The launching of the Plus platform started the second, and now the Unacademy franchise model is executing a fresh wave of expansion for the company. All the ways of progress are fruitful for the future of Edtech in India. Edtech is expected to be one of the fastest-growing sectors in the next decade, and companies like Unacademy will drive the revolution.