Unacademy’s FY23 Revenue Up 26% to Rs 907 Crore, Losses Reduced

Unacademy, the test preparation startup, reported a 41% reduction in losses to Rs 1,678 crore in FY23, despite a challenging period marked by continuous layoffs. The Bengaluru-based startup also witnessed a 26% increase in revenue, reaching Rs 907 crore, according to regulatory filings obtained by PrivateCircle.

In a recent internal memo to employees, Munjal conveyed that the company’s reserves provide a comfortable runway of over four years. The runway is anticipated to extend to eight years as the startup consistently reduces its cash burn, currently down by 60%, although specific details were not disclosed. Munjal also noted the growth of Unacademy’s offline centers business, which expanded from serving 6,000 learners in 2022 to accommodating 32,000 learners in 2023.

In June, Munjal stated that the company successfully decreased its monthly cash burn to Rs 1.9 crore while achieving revenues of Rs 130 crore in May. Similar to its counterparts in the test prep and K-12 segment, the startup is presently undergoing a strategic shift, emphasizing unit economics and profitability, marked by several rounds of layoffs.

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In April 2022, the company terminated approximately 1,000 contractual and full-time employees. Subsequently, in November 2022, the company eliminated as many as 350 roles, affecting approximately 10% of employees throughout the group.

In January 2023, the Relevel business unit within the company laid off 40 employees, constituting 20% of its workforce. Following that, in March 2023, Unacademy implemented a round of layoffs, affecting 12% of its overall workforce.