Gaurav Munajal-led Unacademy's losses decline by 62% to Rs 631 crore in FY24

Bengaluru-based edtech giant Unacademy has reportedly recorded total revenue of Rs 988 crore in FY24, a 5% decline from Rs 1,044 crore in FY23, Entrackr reported.

The revenue dip reflects a slowdown in its online business, which had previously experienced significant growth during the pandemic.

The edtech unicorn has increasingly shifted towards offline learning models as the edtech sector lost momentum with the reopening of schools and coaching centres post-pandemic.

Despite this revenue decline, the Gaurav Munjal-led company has been working aggressively to cut down costs and improve its overall financial health.

Losses decline by 62%

One of the key highlights of FY24 for Unacademy was a 62% reduction in net losses. The company reported a loss of Rs 631 crore, significantly improving from the Rs 1,678 crore loss in FY23.

The reduction in losses can be attributed to multiple cost-cutting strategies, including layoffs and a major restructuring of operations.

Unacademy’s EBITDA loss also showed improvement, decreasing to Rs 489 crore in FY24 from Rs 1,553 crore in the previous fiscal year. 

Major reductions in expenses

Unacademy’s cost-cutting measures were seen across several major expense categories. For instance, employee benefit expenses dropped by 58% to Rs 539 crore in FY24. This sharp reduction is a result of the company’s layoffs and reorganization efforts.

The company let go of 250 employees in 2024 as part of its strategy to streamline operations.

Advertising and marketing expenses also saw a significant reduction, falling by 34% to Rs 244 crore. Additionally, educator charges—another substantial cost—decreased by 23%, down to Rs 436 crore.

Cash reserves and future outlook

As of March 2024, Unacademy had Rs 1,573 crore in cash and cash equivalents, giving it a strong financial runway. The edtech giant has not raised any fresh funding since its $440 million Series H round in August 2021, which valued it at $3.44 billion. 

Founder Gaurav Munjal has assured that the company is on track for long-term growth. “To set the record straight, Unacademy will have its best year in terms of growth and profitability. We also have many years of runway,” he tweeted in response to reports about the company’s financial condition.

The company believes that its cost-cutting initiatives will continue to yield positive results in FY25 and beyond, with a focus on driving growth through offline test-preparation centers and other initiatives.