Gaurav Munjal-led edtech startup Unacademy has reported a significant reduction in its consolidated net loss by nearly 40% in the financial year ending March 31, 2023. The startup reported a loss of Rs 1,678.1 crore in FY23, down from Rs 2,847.9 crore in the previous fiscal year.
The company's operating revenue saw a 26% increase, reaching Rs 907 crore in FY23, up from Rs 719.2 crore in the previous year. The growth is primarily attributed to the revenue generated from course subscription fees. Including other income, Unacademy's total income rose by 23.6% year-on-year to Rs 1,044.3 crore.
Unacademy's total expenditure declined by 26% to Rs 2,734.2 crore in FY23 from Rs 3,702.8 crore in FY22. The startup significantly reduced its advertising expenses by 33% to Rs 370.2 crore, and payments to educators were cut by 31% to Rs 564.2 crore.
Employee and operational efficiency
Unacademy allocated Rs 1,281.2 crore to employee benefits in FY23, a 27.7% decrease from the previous year. The reduction came after the company announced multiple rounds of layoffs, salary cuts among senior leadership, and senior-level departures. Despite these cuts, employee benefits remain the largest expense category.
Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) improved by 87%, indicating enhanced operational efficiency.
Aiming for profitability
Gaurav Munjal, CEO and Co-Founder, stated that Unacademy has reduced its cash burn by about 60% for the calendar year 2023 and has a cash reserve runway of more than four years.
The edtech startup also claimed that it has experienced positive cash flow in the April-June quarter of FY24. While the online business declined by 30%, revenue from offline centers surged to Rs 400 crore in CY23, a significant increase from Rs 53 crore in CY22.
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