Unacademy’s founder and CEO, Gaurav Munjal, has affirmed that the edtech giant is set to achieve its best year of growth and profitability in 2024, dismissing circulating rumors of the company’s decline. This announcement follows a significant layoff of 250 employees, adding to a series of workforce reductions since 2022.
Addressing the rumors on the microblogging platform ‘X’, Munjal stated, “There is a lot being said about Unacademy currently. To set the record straight, Unacademy will have its best year in terms of growth and profitability. We also have many years of runway. We are building Unacademy for the long run. Ignore the rumours.”
Munjal underscored his confidence by quoting Mark Twain: “Reports of my death have been greatly exaggerated.” This remark was a nod to Unacademy’s robust position in the edtech sector, even as the industry grapples with challenges following the downturn of its rival, Byju’s.
On July 2, LiveMint reported that Unacademy laid off approximately 250 employees across various departments. This includes 150 sales personnel and an additional 100 staff as part of a broader restructuring and performance-based cuts.
An Unacademy spokesperson confirmed the layoffs but did not elaborate on the specific roles or total number of affected employees. The recent workforce reductions add to a growing list, with over 2,000 employees laid off since 2022. This wave of layoffs coincides with ongoing reports suggesting Unacademy is considering a merger with K-12 Techno Services.
The company is also seeing changes in its leadership team. Last month, co-founder Hemesh Singh transitioned from his role as Chief Technology Officer (CTO) to an advisory position.
Financially, Unacademy has been working to stabilize its operations. In the 2022-23 fiscal year, the test-prep platform reduced its losses to ₹1,678 crore from ₹2,847 crore the previous year. Despite this reduction, the losses were nearly double the revenue, which stood at ₹907 crore for the same period.
Munjal’s recent remarks on the current state of affairs at Byju’s highlighted the importance of accepting blunt feedback in business leadership. Criticizing Byju’s CEO Byju Raveendran for his perceived failure to listen to advice, Munjal emphasized that effective leadership relies on being receptive to honest and constructive feedback.
Since its inception, Unacademy has secured a total funding of $877 million from investors such as SoftBank Group, Temasek, Blume Ventures, Peak XV Partners, and Nexus Venture Partners. Despite the challenges, Munjal remains optimistic about Unacademy’s long-term prospects.
