Unacademy FY24 Results Out, Losses Dip By 62% While Revenue Declines By 5.33%

Manvendra HadaSeptember 29, 2024

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Three points you will get to know in this article:

Unacademy’s overall revenue in FY24 was Rs 988.4 crore, down 5.33% from Rs 1,044 crore in FY23.
Reduced their losses by 62% to Rs 631 crore in FY24, down from Rs 1,678 crore in FY23.
To cut losses, the Unacademy laid off 250 staff and declared that it would not provide employee appraisals in 2024.

Unacademy Announces FY24 Results, Major Improvements in Costs While Revenue Flattens

Unacademy’s overall revenue in FY24 was Rs 988.4 crore, down 5.33% from Rs 1,044 crore in FY23. However, the SoftBank-backed firm reduced its losses by 62% to Rs 631 crore in the fiscal year ended March 2024, down from Rs 1,678 crore in FY23.

According to an Entrackr-reviewed document, Unacademy managed to reduce its losses through cost-cutting initiatives such as restructuring.

According to TheKredible, Unacademy’s operating revenue increased by 26.15 percent to Rs 907 crore in FY23, from Rs 719 crore in FY22. Unlike FY23 and FY24, the company’s revenue is now heavily reliant on the offline model.

The company’s EBITDA loss also improved, falling to Rs 489 crore in FY24 from Rs 1,553 crore in FY23. At the same time, the edtech company has Rs 1,573 crore in cash and cash equivalents as of March 2024.

Unacademy’s Growth & Pandemic

Unacademy connects instructors and learners in a variety of fields by providing a selection of courses. The company makes money by selling subscriptions to both online and offline learning programs.

During the pandemic (FY21 and FY22), Unacademy’s online business surged dramatically, but the broader edtech market lost impetus as offline educational institutions, such as coaching centers and colleges, resumed operations.

Unacademy Recovering from Financial Troubles, Recent Cost Cutting Measures

According to the documents, FY24 saw a considerable increase in cost efficiency, and the cost rationalization activities implemented throughout the year are likely to provide excellent benefits in FY25 and beyond.

For reference, Unacademy declared in August 2024 that it would not provide employee appraisals in 2024. Founder Gaurav Munjal indicated that the company has a solid financial runway and is not in danger of failing.

To streamline operations and increase efficiency, the Bengaluru-based company lay off 250 staff.

Funding Drought at Unacademy

These financial changes happen as Unacademy is evaluating merger and acquisition alternatives. In June, media outlets claimed that the SoftBank-backed company was in preliminary talks to merge with K12 Techno, which operates the Orchids International School network.

Unacademy has not raised financing for more than three years. Its most recent equity transaction was a $440 million Series H in August 2021, valued at $3.44 billion.