Unacademy monthly burn down to $7 million from $20 million: CEO Gaurav Munjal

Responding, user Parth Dhebar posted: “Oh, the irony. Isn’t Unacademy burning millions?”

Munjal replied saying, “Burn is down from $20M a month to $7M a month. Will further go down.”

Unacademy fired around 1,000 employees across the group in April as part of cost-cutting measures. These included employees at group firm PrepLadder, which it acquired in 2020. The group comprises Unacademy, PrepLadder, CodeChef, Graphy and Relevel.

Munjal had said then that the steps were aimed at
reducing costs significantly and hitting profitability, even as the company had Rs 2,800 crore in the bank. The startup had also announced paycuts for the top management and founders.

Discover the stories of your interest

Along with Munjal, Roman Saini and Hemesh Singh are cofounders of the Bengaluru-based startup, which was valued at $3.4 billion last year after a $440 million funding infusion led by Singapore’s Temasek.

Unacademy counts
SoftBank, General Atlantic and Meta among its investors.

In July, Munjal had tweeted that the startup had slashed its performance marketing spends from Rs 18 crore a month to Rs 2 crore, claiming that the move had not impacted the company’s growth.

Munjal had also tweeted that Unacademy would stop spending on IPL advertisements from next year.

As the tech winter continues, many firms have resorted to layoffs in a bid to reduce costs. Byju’s and its group companies fired employees recently, as did Vedantu, among others.