Unacademy is focusing on profitability and has announced salary cutbacks for its founders and executives
- ByStartupStory | July 12, 2022
Unacademy, an ed-tech startup, has taken various measures to conquer profitability & make frugality its fundamental credo two years before its IPO. It has chosen to cut leisure expenses and managerial pay, as well as close operations such as Global Test Prep, to turn the firm profitable. In an internal message to workers, Founder & CEO Gaurav Munjal revealed that Unacademy employees will no longer get complimentary lunches and snacks at the office. Employees, particularly senior founders and managers, may expect to forego compensated business class travel, and personal drivers for top executives will be unavailable.
Munjal further stated that ‘frugality’ should be accepted as a core value by the company. The founders have already reduced their pay, and management will soon follow. Munjal stated that Unacademy is inefficient, with crores spent on staff and instructor travel expenditures putting a toll on the firm. Munjal said that as of this morning, the business has approximately ₹ 2,800 crores in the bank.
He stated that such cost-cutting measures may appear to put the firm in a poor light, but this is not the case. “We’re in terrific shape. This is the great barrier we must conquer. Profitability. And once we do, the game will shift for us. “We are well-capitalized, but we still want to be profitable,” Munjal remarked.
Munjal had already sent a message to his workers in May, warning them of a potential “funding winter” and asking them to perform consistently. “We’re looking at a period of at least 12-18 months without money.” Some estimate that this may extend for 24 months,” Munjal started on May 26. It should be mentioned that three months ago, Unacademy fired off 600 people, or around 10% of the total employees, due to non-performance and role redundancy to cut expenses and be more efficient.
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