Unacademy on Cost-cutting roll; Founders and Management takes pay cuts as global test prep gets shut

Unacademy

Unacademy founder Gaurav Munjal told employees on Monday in an internal memo that the firm’s founders and senior management will take pay cuts and the company will also close its global test preparation business.

The aim is to cut costs significantly and achieve profitability even though the SoftBank-backed company has Rs 2,800 crore in the bank.

Gaurav Munjal, Founder of Unacademy, said to his employees, “Even though we have more than INR 2,800 crore in the bank (as of this morning), we are not efficient at all. We are spending millions on staff and faculty travel. Sometimes it is needed, sometimes it is not. There is a lot of unnecessary expenditure that we do. All these we have to cut expenses. We have a strong core business We have to become profitable as soon as possible.”

According to him, the founders have already cut salaries and the same will be introduced to its top management. “We will be closing down certain businesses that have not been able to find a suitable product-market ( PMF), such as Global Test Prep,” he said. This is the second memo from Munjal to his team in recent months. 

He said in May that the funding winter is here and the company needs to change its ways.” We have to do an initial public offering (IPO) in the next two years. And we have to (turn) the cash flow into a positive one. that we must embrace frugality as a core value,” Munjal added in his latest note.

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