Unacademy‘s co-founder and CEO, Gaurav Munjal, stated in a Slack message that the company will achieve group-level profitability by the end of this month. The businessman offered updates on the company’s finances as well as the success of each vertical in a series of communications.
In the updates, Munjal also mentioned that the business anticipates revenue of ₹1,250 crores in CY23, which would represent a 26% increase over revenue of ₹992 crores in CY22. Additionally, the online test preparation sector has experienced a 15% fall while Unacademy’s sales from offline centers have increased by 655%.
All About Unacademy’s Profit!
In the Slack discussions, Munjal disclosed that the business is cash flow positive and would remain so for the upcoming 12 months. Additionally, the key player in edtech will have ₹1,977 crores in cash on hand by the end of 2023. He pointed out that they have at least 116 months of runaway given their current burn rate.
Munjal underlined his goal of becoming Unacademy the biggest edtech company in another Slack chat. He said, “I have stated this before and I will say it again. We soon will have the title of largest edtech firm. The last people standing will be us. We won’t be stopped by a few bumps in the road.” The edtech unicorn has been working to lower its costs and turn a profit for some time. The co-founder revealed internally last month that the executive team would get a permanent salary cut.
“The founders and executive team of Unacademy will all receive permanent payment cuts. The wage reduction will be based on the leaders’ present pay, their responsibilities, and their performance. Salary reductions may be up to 25%. These reductions are permanent, and they won’t be changed until April 2024”, according to Munjal’s Slack message. He also disclosed that the start-up is eliminating 12% of the employment in the same month. He explained that this action was being done to save expenses and increase profitability.