Kul Bhushan · · 1 min readUnacademy takes cost-cutting measures to pass profitability test
Amid a “funding winter,” Indian edtech unicorn Unacademy is taking steps to meet profitability by implementing a pay cut for its founders and closing a few verticals, TechCrunch reports.
The moves are aimed at reining in “unnecessary expenses” such as business-class air travel and complimentary meals and snacks. Unacademy is also shuttering its global test preparation arm.
CEO and co-founder Gaurav Munjal told employees via a note on messaging app Slack that while Unacademy had US$352.3 million in the bank, it has been managing its finances inefficiently. But he also stressed that the company in “a great state” even if it appears that Unacademy is in bad shape because of these measures.
“This is the final frontier that we have to conquer. Profitability. And once we do, it will change the game for us,” Munjal said in his message.
Unacademy is also eyeing an IPO in the next two years.
In April, the SoftBank-backed unicorn fired nearly 600 employees, which included contractual workers and educators. The layoff affected less than 10% of the workforce, according to the company.
See also: Tracking layoffs across Asia’s startup ecosystem (Updated)
Editing by Samreen Ahmad and Joy Tirkey
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