By Start Ups
Photo: Twitter @unacademy
Edtech company Unacademy has laid off 250 people across functions, according to people familiar with the matter. Of these, 100 are from core functions such as marketing, business, and product, while the rest are from sales. The SoftBank-backed firm was valued at $3.4 billion in its last funding in 2021.
Unacademy has recorded multiple rounds of layoffs since 2022. These have affected at least 2,000 employees so far. Unacademy’s workforce strength is down to under 3,000 compared to 6,000 in the early part of 2022, according to the sources.
An Unacademy spokesperson confirmed the development but didn’t provide the number of employees affected.
“As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” said the Unacademy spokesperson.
Unacademy is reportedly exploring a potential merger with K-12 Techno Services, which owns school chain Orchid International. Last month, Hemesh Singh, co-founder of edtech firm Unacademy, stepped down as the chief technology officer and moved into an advisory role.
For the fiscal year ending March 2023 (FY23), Unacademy recorded a 26 per cent jump in its operating revenue to Rs 907 crore while controlling losses by nearly 40 per cent to Rs 1,004 crore, according to Entrackr. At the beginning of FY24, the company also claimed that it was close to achieving profitability at the group level. The firm is yet to file the audited annual report for the last fiscal year (FY24).
Gaurav Munjal (CEO) started Unacademy along with his friends Dr Roman Saini and Hemesh Singh (CTO) in 2015. They initially started it as an initiative on YouTube in 2010.
The development comes at a time when a growing number of edtech companies are struggling and laying off employees in a bid to conserve cash and focus on profitability. They have been laying off staff after schools reopened across the country following the Covid-19 pandemic lockdowns.
Since 2022, Indian edtech startups have laid off a reported total of about 20,000 employees.
Last month, investment firm Prosus wrote off the value of its 9.6 per cent stake in edtech company Byju’s. This is perhaps one of the biggest write-offs in tech startups by a marquee investor. Prosus recorded a fair value loss of $493 million on account of its investment in the company, the Dutch tech investor said in its FY24 annual report on June 24. “In this financial year, the group wrote off the fair value of its 9.6 per cent effective interest in Byju’s, due to the significant drop in value for equity investors. A fair value loss of $493 million was recognised in other comprehensive income in the current year,” said Prosus in its annual report.
“We have written down Byju’s primarily because we have inadequate information on the company’s financial health, liabilities, and future outlook,” the Prosus spokesperson said in response to a query.
Unacademy co-founder Gaurav Munjal recently shared learnings from the last 24 months on social media. “All 2021 valuations are bloated. This is not market correction. This is reality. 2021 wasn’t,” said Munjal. “Understanding the unit economics on day one is probably the best thing you can do.”
He also said that some years are not about winning, some years are about surviving.
First Published: Jul 02 2024 | 8:51 PM IST