Education technology firm Unacademy expects to earn an annual recurring revenue (ARR) of $250-300 million (around Rs 1,789 crore to Rs 2,146 crore) on the back of a rise in paid subscribers and expansion of its offerings, according to a senior company official.
The company offers test series, personalised feedback, and one-on-one interactions with educators for various competitive examinations, including UPSC.
"Right now, we have 90,000 active paid subscribers. My goal is to take this to a million in the next two years. That would make our revenue 10 times from here. We are looking to $250-300 million ARR (annual recurring revenue), and for that, we need capital, teachers, and so on," Gaurav Munjal, CEO and Co-Founder, Unacademy told PTI.
Currently, the edtech startup has more than 20,000 registered educators and over 18 million learners. As on February 1, Unacademy Plus had hit $30 million ARR. Generally, ARR refers to the yearly value of a single subscription.
Munjal said the company is planning to offer online coaching for state service examinations in Kerala, Maharashtra, West Bengal, and other states.
"If we have to have one million subscribers, we will have to launch a subscription for every single examination. We have 32 exam services right now, we have to launch at least 40 more," he said.
The platform is targeting a total of 72 examination services in the next two years, Munjal added.
In June 2019, the Bengaluru-based edtech startup raised $50 million in Series D funding round from Steadview Capital, Sequoia India, Nexus Venture Partners, and Blume Ventures.
This funding round also saw the participation of Aakrit Vaish (Co-Founder and CEO, Haptik) and Sujeet Kumar (Co-Founder and CEO, Udaan). Besides, Gaurav Munjal and Roman Saini also invested in this round.
Media reports suggest that Unacademy is now valued at over $200 million – a 2X jump in valuation since its Series C round. The startup said it will use the investment to onboard more educators, fuel growth across multiple exam categories, and build product and team.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Suman Singh)