Unacademy will achieve group-level profitability by April-end, says co-founder & CEO Gaurav Munjal

Unacademy will achieve group-level profitability by the end of this month, co-founder and CEO Gaurav Munjal said in a Slack message. The entrepreneur, in a series of messages, also shared an update on the company’s financials, and individual verticals’ performance, among other things. The screenshot of these Slack messages was viewed by Business Today.
 
In the updates, Munjal also shared that the company is expecting to touch revenues worth Rs 1,250 crore in CY23 which is a 26 per cent rise from the previous year’s revenue (it clocked Rs 992 crore in CY22). In addition, while Unacademy’s business from offline centers has gone up by 655 per cent, the online test prep vertical has seen a 15 per cent decline. 
 
Munjal revealed in the Slack messages that the company is cash flow positive and will be so for the next 12 months. Moreover, by the end of 2023, the edtech major will have a cash balance of Rs 1,977 crore. Keeping in mind its current burn rate (Rs 17 crore), he noted that they have at least 116 months' worth of runaway.
 
In a separate Slack message, Munjal also reiterated his vision to make Unacademy the largest edtech company. He wrote, “I have said this before and I will say it again. We will be the largest edtech company soon. We will be the last ones standing. A few rough patches here or there won't stop us.”
 
BT has reached out to Unacademy for an official comment. The story will be updated once the response is received. 
 
The edtech unicorn has been making efforts to reduce its expenses and become profitable for sometime now. Last month, the co-founder announced internally that the leadership team will take a “permanent salary cut.”
 
“Unacademy’s leadership including the founders will take a permanent salary cut. The salary cut will depend on the current salary of the leaders, their scope, and their performance. The salary cuts can go up to 25 per cent. These cuts are permanent and will only be revised in April 2024,” Munjal wrote in a Slack message.  
 
In the same month, he also announced that the start-up is cutting down 12 per cent of the jobs. This step, he stated, was being taken to reduce costs and achieve profitability.

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