SUMMARY
- Unacademy recorded a total revenue of Rs 988.4 crore during FY24, a 5.33% decline from the Rs 1,044 crore in FY23.
- The firm managed to mitigate its losses by 62%, reducing them to Rs 631 crore from Rs 1,678 crore in FY23.
- Its EBITDA losses decreased to Rs 489 crore in FY24 from Rs 1,553 crore in FY23.
Unacademy recorded a total revenue of Rs 988.4 crore during FY24, representing a 5.33% decline from the previous year’s revenue of Rs 1,044 crore. However, the firm managed to mitigate its losses by 62%, reducing them to Rs 631 crore from Rs 1,678 crore in FY23.
This reduction in losses was achieved through a combination of cost-cutting measures, including restructuring, as detailed in a document reviewed by Entrackr.
Despite the decline in revenue, Unacademy was able to increase its operating revenue by 26.15% to Rs 907 crore in FY23 from Rs 719 crore in FY22. Notably, the firm’s revenue has shifted towards the offline model, indicating a strategic shift in its business model.
The online business of Unacademy experienced substantial growth during the pandemic years of 2021 and 2022. However, the broader edtech sector saw a downturn following the reopening of offline educational institutions, including coaching centers and colleges, which impacted the firm’s revenue.
The company’s EBITDA losses decreased to Rs 489 crore in FY24 from Rs 1,553 crore in FY23. Unacademy maintained Rs 1,573 crore in cash and cash equivalents as of March 2024.
Unacademy serves as a platform connecting educators and learners across various disciplines, offering a diverse range of courses. The company’s revenue streams are derived from subscriptions for both online and offline learning services.
FY24 marked a significant milestone in terms of cost efficiency, with the company’s cost rationalization initiatives expected to deliver positive outcomes in future fiscal years.
In August 2024, Unacademy announced a decision not to conduct appraisals for its employees in the upcoming year. Founder Gaurav Munjal expressed confidence in the company’s financial stability, stating that it is well-positioned for survival.
To enhance operational efficiency, the firm also took the step of laying off 250 employees.
These financial developments occur amidst Unacademy’s exploration of merger and acquisition opportunities. In June, it was reported that the firm was in preliminary discussions for a merger with K12 Techno, which operates the chain of Orchids International Schools.
Softbank-backed Unacademy has not sought new funding for over three years, with its latest equity round being a $440 million Series H in August 2021, at a valuation of $3.44 billion.
