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Unacademy has 4 year runway with 60% reduced cash burn: CEO Gaurav Munjal

Unacademy CEO Gaurav Munjal highlighted that the company achieved positive cash flow during the April-June quarter of the current fiscal year.

Unacademy has 4 year runway with 60% reduced cash burn: CEO Gaurav Munjal

Tuesday December 05, 2023 , 2 min Read

Edtech major Unacademy has claimed to have reduced its cash burn by 60% and has a runway of over four years with its current cash reserves, according to a post by CEO and co-founder Gaurav Munjal.

In a post on X (formerly Twitter), he highlighted that the company achieved positive cash flow during the April-June quarter of the current fiscal year.

However, the online business of the edtech company witnessed a 30% decline, while the EBITDA (earnings before interest, taxes, depreciation and amortisation), a metric indicating core operational efficiency, exhibited an 87% improvement, as per Munjal.

Unacademy-owned Graphy—a SaaS platform for creators and educators that helps in growing their online brand and business—grew by 30% and is very close to profitability, claimed Munjal.

In June, Graphy acquired Singapore-based community platform Scenes to enhance its offerings and expand its reach in the creator ecosystem. A few months later, Sumit Jain, the Co-founder and CEO of Graphy, was promoted to a partner role at Unacademy.

Unacademy’s chief also noted that the learner count at its centres increased to 32,000 in 2023 from 6,000 in 2022.

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Back in April, Munjal had highlighted that Unacademy’s revenue from offline centres had surged to Rs 400 crore in CY23, a substantial 655% increase from Rs 53 crore in CY22. At that time, Unacademy asserted its progress toward achieving group-level profitability for the calendar year 2023, citing a registered revenue of Rs 1,250 crore compared to Rs 992 crore in the preceding year.

The Bengaluru-based firm has witnessed a jump in revenue through sharp growth in its offline business. However, the revenue from the online test preparation segment—its core business—has dropped.

Munjal has shared these recent figures on X against the backdrop of a wave of senior-level departures from the company, with the latest being the exit of CFO Subramanian Ramachandran.

Meanwhile, the edtech unicorn has implemented various cost-cutting measures, including multiple rounds of layoffs and senior leadership salary reductions, to enhance the profitability of its operations.

Unacademy clocked a loss of Rs 2,848 crore for FY22. The unicorn’s losses widened by 85% since the previous fiscal year when it reported a loss of Rs 1,537.4 crore. It is yet to disclose its financial results for the fiscal year 2022-23.


Edited by Suman Singh