Unacademy Reports 60% Reduced Cash Burn, Claims Over Four-Year Runway

• ByStartupStory     |    December 6, 2023

Unacademy, a leading edtech company, has announced a significant reduction in its cash burn by 60%, coupled with a claim of having a runway of over four years based on its current cash reserves. CEO and co-founder Gaurav Munjal shared this update on X (formerly Twitter), highlighting the achievement of positive cash flow during the April-June quarter of the current fiscal year.

Despite facing a 30% decline in the online business segment, Unacademy showcased an 87% improvement in EBITDA (earnings before interest, taxes, depreciation, and amortization), a key metric indicating core operational efficiency, as per Munjal. He also noted the positive performance of Graphy, a SaaS platform owned by Unacademy, which experienced a 30% growth and is on the verge of achieving profitability. Graphy, a platform supporting creators and educators in growing their online brand and business, had previously acquired Singapore-based community platform Scenes to enhance its offerings and expand its reach in the creator ecosystem.

In addition to these updates, Munjal mentioned the substantial growth in learner count at Unacademy’s centers, increasing from 6,000 in 2022 to 32,000 in 2023.

This announcement follows Unacademy’s efforts to enhance profitability, including cost-cutting measures such as multiple rounds of layoffs and senior leadership salary reductions. The company’s move towards positive cash flow and reduced cash burn aligns with its commitment to achieving group-level profitability for the calendar year 2023.

Despite the positive financial strides, Unacademy has recently witnessed senior-level departures, with the latest being the exit of CFO Subramanian Ramachandran. The company is yet to disclose its financial results for the fiscal year 2022-23, but Munjal’s update on X provides insights into the company’s progress and strategic focus on financial sustainability.

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