The effect of slowdown in the international market is now visible on the big startups of the country. Investors are putting pressure on these startups to turn profitable as soon as possible. At the same time, different tricks are coming out to make them profitable. Now Unacademy, one of the country’s largest edtech startups, has found a new way to make profits and has made several announcements.
Path to Profit: The company has decided to reduce its expenses to become profitable. It has been said from the company that now the employees will not get the facility of free food and snacks in any office of the company. With this, now the company will not allow anyone to travel by business class, that is, now all the employees will have to travel in economy class.
The company has also done away with the facility of providing a regular driver to the Chief Experience Officers (CXOs) in the top management. To make the company profitable, the salary of the founders and the management will also be cut. With this the company has decided to close the loss making business.
Company’s loss increased five times: Edtech startup Unacademy is constantly struggling with losses. In the financial year 2020-21, the company’s loss had increased by 494 percent to Rs 1534 crore, while in the financial year 2019-20, the company had a loss of Rs 258.6 crore. At the same time, if we talk about the expenses of the company, it was Rs 452 crore in the financial year 2019-20, which reached Rs 2029 crore in the financial year 2020-21.
Fears of recession caused a fall in the stock markets across the world and this has affected the funding of Indian startups in a big way. Gaurav Munjal, co-founder of the company says that looking at the time, it seems that we are not going to get any funding for the coming 12- 18 months. Some people feel that this can happen even for the next 24 months.
Let us tell you, Unacademy raised $440 million from its investors in August last year. According to a report in Business Standard, Sequoia Capital, which has invested in unicorns in India’s new age companies such as Byju’s, Oyo, Ola, Zomato, Meesho, Car24, Blackbuck, Pine Labs, Freshworks and Razorpay, has asked the CEOs of these startups to At any cost the era of hypergrowth is over now. For this reason companies should focus on making profits.