New Delhi: Edtech unicorn Unacademy will go into cost-cutting mode, with global business closures, salary cuts of founders and managers, and complimentary meals and snacks to employees, according to producer Gaurav Munjal.
Munjal says the SoftBank-backed company has Rs 2,800 crore in the bank. Read more: Big trouble for Uber! Company illegally expands operations in India, leaked files expose sensational facts
“Even though we have over Rs 2,800 crore in the bank (as of this morning), we are completely incapacitated.” We spend millions of dollars on employee and trainer travel. Sometimes it is needed, and sometimes it is not,” said Munjal in an email titled ‘Frugality.’ “There are many unnecessary expenses that we incur.” All these expenses should be reduced Our primary business is solid. We must become profitable as soon as possible,” Munjal said in an internal memo to his employees. Read more: Starbucks adds ‘desi’, masala chai, filter coffee to menu
Munjal said in an emailed statement that the management and founders had already accepted pay cuts and had closed operations that did not live up to expectations.
“We will close certain firms that have failed to establish product market fit (PMF), such as Global Test Prep,” read an email that begins with the words “affordability.”
Munjal stressed that the decision to do away with non-core privileges and perks such as free lunches for drivers and employees for CXOs was in line with the company’s goal of listing.
“Within the next two years, we should conduct an initial public offering (IPO).” We also need to improve our cash flow. “To do this, we must adopt austerity as a fundamental principle,” the note said.
Munjal’s message to employees is his second message in the last two months. Munjal had in May cautioned employees to work under “constraints”, citing the risk of a “financial winter”.
“We are looking at a period of at least 12-18 months without money.” Some estimate that it may extend to 24 months,” Munjal said on May 26.
Meanwhile, Unacademy increased its employee stock ownership plan (ESOP) pool by 20%, increasing the amount from 238.7 million options to 286 million options, according to regulatory filings.
In April, the edtech startup laid off nearly 600 people, more than 10% of its workforce.