Unacademy to achieve group-level profitability by April-end
Unacademy co-founder and CEO Gaurav Munjal stated in a Slack message that the company will reach group-level profitability by the end of this month. In a series of communications, the entrepreneur also provided an update on the company’s financials and the success of specific verticals, among other things. Business Today viewed a snapshot of these Slack messages. Munjal also stated in the reports that the business expects to generate Rs 1,250 crore in revenue in CY23, a 26% increase from the previous year (it generated Rs 992 crore in CY22). Furthermore, although Unacademy’s commerce from offline facilities has increased by 655%, the online test prep sector has decreased by 15%.
Munjal indicated in Slack chats that the firm is cash flow positive and will remain so for the next year. Furthermore, the edtech behemoth would have a cash balance of Rs 1,977 crore by the end of 2023. Considering its present burn rate (Rs 17 crore), he calculated that they had at least 116 months of runaway. Munjal also restated his goal of becoming Unacademy the largest edtech business in a subsequent Slack thread. “I have said it before, and I will say it again,” he wrote. We will soon be the largest edtech firm. We’ll be the only ones left standing. A few hiccups here and there will not deter us.” Unacademy has been contacted by BT for an interview.
Once the response is received, the story will be updated. For some years, the edtech unicorn has been attempting to lower its expenditures and become profitable. The co-founder said last month that the executive team will undergo a “permanent salary cut.” “The leadership of Unacademy, including the founders, will take a permanent salary cut.” The compensation drop will be based on the leaders’ present salary, scope, and performance. Salary cutbacks of up to 25% are possible. “These cuts are permanent and will not be reconsidered until April 2024,” Munjal stated in a Slack post. In the same month, he stated that the start-up is laying off 12% of its employees. He claimed that this measure was being taken.