Unacademy, one of India’s best-known startups, is taking a series of cost-cutting measures, including cutting founder salaries and closing “some businesses” as it promises to be a lean and public company in two years.
In a corporate-wide message to Slack on Monday, Unacademy co-founder and chief executive Gaurav Munjal said the startup has $352.33 million in the bank, but he believes the startup is in “bad shape” and “inefficient” in managing finances. .
“We are well capitalized, but we still want our business to be profitable,” he wrote in an email.
The message comes as most tech stocks around the world have lost more than half their value in recent months, and investors are increasingly demanding better funding from startups and becoming very selective in writing new checks.
Online learning giant Unacademy, valued at over $3.4 billionplans a series of cost-cutting measures, including imposing restrictions on business class travel, wage cuts for founders and management, and providing food and snacks as free perks with the startup.
“[…] We are generally inefficient. We spend crores on staff and faculty travel. Sometimes it’s needed, sometimes not. There are many unnecessary expenses that we make. We must cut all these costs. We have a strong core business. We need to become profitable as soon as possible,” he wrote.
Unacademy is also closing “some businesses” such as Global Test Prep that were unable to find a product suitable for the market, Munjal wrote in a post reviewed by TechCrunch.
“Now all these changes can give the impression that we are in a bad state. Believe me. We are not. We are in excellent condition. This is the last frontier we have to overcome. Profitability. And once we do that, it will be a game changer for us. We are well capitalized, but we still want our business to be profitable. And this will take the Unacademy Group to another league,” he wrote.
Credit: techcrunch.com /