Unacademy, a leading edtech company, has declared a substantial 60% reduction in cash burn, coupled with a claim of having a runway of over four years based on its current cash reserves. CEO and co-founder Gaurav Munjal shared this update on X (formerly Twitter), emphasizing the achievement of positive cash flow during the April-June quarter of the current fiscal year.

Despite facing a 30% decline in the online business segment, Unacademy showcased an impressive 87% improvement in EBITDA (earnings before interest, taxes, depreciation, and amortization), a key metric indicating core operational efficiency, according to Munjal. He also highlighted the positive performance of Graphy, a SaaS platform owned by Unacademy, which experienced a robust 30% growth and is on the verge of achieving profitability.

Graphy, a platform supporting creators and educators in growing their online brand and business, had previously acquired Singapore-based community platform Scenes to enhance its offerings and expand its reach in the creator ecosystem.

In addition to these updates, Munjal mentioned the substantial growth in learner count at Unacademy’s centers, witnessing a remarkable increase from 6,000 in 2022 to 32,000 in 2023.

This announcement reflects Unacademy’s commitment to enhancing profitability, including strategic cost-cutting measures such as multiple rounds of layoffs and senior leadership salary reductions. The company’s move towards positive cash flow and reduced cash burn aligns with its overarching goal of achieving group-level profitability for the calendar year 2023.

Despite these positive financial strides, Unacademy has recently witnessed senior-level departures, including the exit of CFO Subramanian Ramachandran. The company is yet to disclose its financial results for the fiscal year 2022-23, but Munjal’s update on X provides valuable insights into the company’s progress and strategic focus on financial sustainability.

By Admin

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