Unacademy, an edtech startup backed by SoftBank, has laid off 250 employees. This recent round of layoffs includes approximately 100 employees from crucial areas like business development and marketing, while the rest are from the sales department. The company confirmed that this move is part of efforts to streamline operations and enhance business efficiency to align with its goals and vision for the year.
This marks Unacademy’s third round of layoffs in three years.In March 2023, the company reduced its workforce by 12%, equivalent to around 380 employees. Prior to that, in April 2022, Unacademy had laid off approximately 1,000 contractual and full-time employees.
“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,” the company stated. Unacademy counts Peak XV Partners and General Atlantic among its investors.
Last month, Hemesh Singh, co-founder of Unacademy, stepped down as Chief Technology Officer, transitioning into an advisory role.
On May 31, it was reported that after an initial surge in online business due to the pandemic, Unacademy experienced a slowdown. In response, the company has shifted focus towards expanding its offline presence in the test preparation segment. This move positions Unacademy to compete with companies such as Byju’s-owned Aakash, Bodhi Tree-backed Allen Career Institute, and GSV Ventures-backed PhysicsWallah.
Unacademy began as a YouTube channel in 2010, created by Gaurav Munjal, Roman Saini, and Hemesh Singh. It evolved into a full-fledged edtech platform in 2015 and currently generates a significant portion of its revenue from its offline business.
In December, CEO Gaurav Munjal informed employees that the company had Rs 1,800 crore (approximately $216 million) in reserves, providing a cash runway of four years. According to Munjal, Unacademy had reduced its cash burn by 60% in 2023 and aimed to extend its runway to eight years by 2024 through further reductions in burn.
The startup’s financials show that its losses narrowed 41% to Rs 1,678 crore in FY23, while revenue increased by 26% to Rs 907 crore during the same period. Unacademy has yet to disclose its financial results for FY24.
This marks Unacademy’s third round of layoffs in three years.In March 2023, the company reduced its workforce by 12%, equivalent to around 380 employees. Prior to that, in April 2022, Unacademy had laid off approximately 1,000 contractual and full-time employees.
“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,” the company stated. Unacademy counts Peak XV Partners and General Atlantic among its investors.
Last month, Hemesh Singh, co-founder of Unacademy, stepped down as Chief Technology Officer, transitioning into an advisory role.
On May 31, it was reported that after an initial surge in online business due to the pandemic, Unacademy experienced a slowdown. In response, the company has shifted focus towards expanding its offline presence in the test preparation segment. This move positions Unacademy to compete with companies such as Byju’s-owned Aakash, Bodhi Tree-backed Allen Career Institute, and GSV Ventures-backed PhysicsWallah.
Unacademy began as a YouTube channel in 2010, created by Gaurav Munjal, Roman Saini, and Hemesh Singh. It evolved into a full-fledged edtech platform in 2015 and currently generates a significant portion of its revenue from its offline business.
In December, CEO Gaurav Munjal informed employees that the company had Rs 1,800 crore (approximately $216 million) in reserves, providing a cash runway of four years. According to Munjal, Unacademy had reduced its cash burn by 60% in 2023 and aimed to extend its runway to eight years by 2024 through further reductions in burn.
The startup’s financials show that its losses narrowed 41% to Rs 1,678 crore in FY23, while revenue increased by 26% to Rs 907 crore during the same period. Unacademy has yet to disclose its financial results for FY24.
