Unacademy Trims Net Loss To INR 285 Cr In FY24

SUMMARY

Unacademy trimmed its standalone net loss by 82.09% to INR 285 Cr in the financial year ended March 31, 2024 (FY24) from INR 1,592 Cr in the previous fiscal year on the back of a reduction in overall expenditure

Its operating revenue incurred a marginal dip of 2.31% to INR 716 Cr in FY24 from INR 733 Cr in the previous fiscal year

The startup was able to cut its total expenditure by half to INR 1,149 Cr in FY24, precisely 53.29% from INR 2,460 Cr in FY23

Gaurav Munjal-led Unacademy trimmed its standalone net loss by 82.09% to INR 285 Cr in the financial year ended March 31, 2024 (FY24) from INR 1,592 Cr in the previous fiscal year on the back of a reduction in overall expenditure.

Its operating revenue incurred a marginal dip of 2.31% to INR 716 Cr in FY24 from INR 733 Cr in the previous fiscal year. It is pertinent to note that Unacademy generates revenue from course subscription fees it collects from students.

The Peak XV Partners-backed edtech startup’s total income, including other income, was INR 864 Cr during the year under review from INR 869 Cr last year. However, its other income increased to INR 148 Cr in FY24 from INR 136 Cr in the previous fiscal year.

Founded in 2015 by Munjal, Roman Saini and Hemesh Singh, Unacademy currently claims to have a network of 91K registered educators (teachers) and over 99 Mn learners. It caters to students in over 14 Indian languages across cities. Besides Unacademy, the group counts Graphy, UnacademyX, NextLevel, and Prepladder among its subsidiaries.

Tracing Unacademy’s Expenditure:

The startup was able to cut its total expenditure by half to INR 1,149 Cr in FY24, precisely 53.29% from INR 2,460 Cr reported in the last year.

Employee Benefit Expenses: Employee costs dropped 69.47% to INR 340 Cr in FY24 from INR 1,114 Cr during the previous fiscal year. This decline can be attributed to the laying off of 250 employees in July and other multiple restructuring exercises before.

Advertising Expenses: The ad expenses declined 33% to INR 201.3 Cr in FY24 from INR 293.4 Cr spent in FY23.

Miscellaneous expense: Miscellaneous expenses which included educator charges, offline partner fee, expected credit loss allowance, payment gateway charges, and write-off of property, plant and equipment, were also trimmed to INR 7,62.5 Cr in FY24 from INR 12,82.9 Cr in the previous fiscal year.

Cost of technical service: The startup’s cost of technical service increased to INR 297.7 Cr in FY24 from INR 283.6 Cr in the previous fiscal year.