Unacademy Achieves 26% Revenue Growth and Approaches Group-Level Profitability

• ByStartupStory     |    April 28, 2023

Edtech firm Unacademy’s CEO Gaurav Munjal shared an internal message claiming that the company is set to attain group-level profitability this year. The company has achieved a 26% increase in group-level revenue for the calendar year 2023, with a current revenue of Rs 1,250 crore, up from Rs 992 crore in the previous year. This development positions Unacademy as a leading player in the Indian edtech space.

In order to boost profitability, Unacademy, the Indian edtech unicorn, has implemented several cost-cutting measures, including multiple rounds of layoffs. Despite experiencing a decline in revenue from its core online test preparation segment, the company has managed to achieve a significant increase in revenue through strong growth in its offline business. 

According to Unacademy’s CEO Gaurav Munjal, revenue from its offline centres has grown from Rs 53 crore in CY22 to Rs 400 crore in CY23, representing a 655% increase. However, online test preparation revenue has dropped 15% to Rs 620 crore in CY23 from Rs 732 crore in the previous year. Despite these challenges, Unacademy remains a prominent player in the Indian edtech market.

Unacademy’s acquisition of PrepLadder, a platform for postgraduate entrance exam preparation, has proven to be a sound investment, with revenue increasing by 9% to Rs 200 crore in CY22. Another one of Unacademy’s offerings, Graphy, a content creation platform, has seen an impressive 68% growth in revenue, reaching Rs 30 crore. These developments further solidify Unacademy’s position as a leading player in the Indian edtech industry.

Unacademy’s CEO, Gaurav Munjal, has announced that the company’s cash balance as of March 2023 exceeds Rs 2,100 crore. Furthermore, the edtech major is set to achieve its first-ever month of group-level EBITDA profitability in April 2023, indicating strong operational efficiency. Unacademy also boasts a healthy cash balance of Rs 1,977 crore as of December 2023, with an average monthly burn of Rs 17 crore between April 2023 and December 2023. This leaves the company with a runway of about 116 months, according to Munjal. These financial metrics further demonstrate Unacademy’s position as a leading player in the Indian edtech space.

Despite incurring a loss of Rs 2,848 crore for FY 2022, Unacademy remains optimistic about its future. Although the company’s losses widened by 85% since the previous fiscal year, when it reported a loss of Rs 1,537.4 crore, Unacademy’s CEO, Gaurav Munjal, has dismissed rumors of the company’s underperformance, declaring that this will be the best year for the edtech unicorn since its inception in 2015.

Munjal has also expressed confidence in Unacademy’s ability to become the largest edtech company and emerge as the last player standing in the industry. In comparison, rival edtech unicorn BYJU’S reported a loss of Rs 4,588 crore in FY21, while Physics Wallah was the only profitable firm among edtech unicorns, posting a 14-fold increase in profits in FY22.

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