Edtech firm Unacademy, which aims to make the core business profitable soon, has seen significant improvement in cash burn in its business. The firm's co-founder and CEO Gaurav Munjal in the town hall meeting said, "Three years ago we used to burn more than Rs 1,000 crore (in core biz), this CY it will be under Rs 200 crore. This is half of what we did last year."
He added that they are in "Default Alive State with Rs 1,200 crore in the bank." Last year in July as part of the company's efforts to streamline operations and enhance business efficiency, it underwent a restructuring exercise and laid off 250 employees. The company had said that it was necessary keeping in mind the company's goals and vision for the year.
The co-founder added that some of its businesses are generating cash each month like Graphy and PrepLadder. He stated that any edtech that goes after multiple acquisitions to grow is bound to fail. "It just doesn’t work in this market. So keeping the “Blinders on” and not worrying about who is acquiring whom and focusing on profit is the only way to go," he added in a post on LinkedIn.
Also, about 70% of its offline centres will be profitable at a centre Level this year. Munjal also informed that Airlearn is the fastest growing Unacademy Group Tech Product with almost 70,000 daily active users and $2 million ARR (annualised revenue rate) in the last 12 months.