Unacademy in 'default alive' state, to cut core biz cash burn to Rs 200 crore in 2025: CEO Gaurav Munjal

Unacademy in “default alive” state, to cut core biz cash burn to Rs 200 crore in 2025: CEO Gaurav Munjal

Edtech firm Unacademy expects to significantly reduce its cash burn in core operations to under Rs 200 crore this calendar year – an 80 percent drop from Rs 1,000 crore just three years ago – as the company doubles down on profitability and operational focus, founder and CEO Gaurav Munjal said in a post on X following a townhall with employees.

Unacademy’s cash burn this year is also half of what it was in 2024, with the company now in a “default alive” state, holding Rs 1,200 crore in the bank, Munjal added. The shift comes as the broader edtech sector, once flush with capital, faces a brutal reset – most notably seen in the struggles of peers like Byju’s.

Munjal made it clear that profit, not acquisitions, will be the core strategy going forward. “Any edtech that goes after multiple acquisitions to grow is bound to fail. It just doesn’t work in this market,” he wrote, referencing past missteps without naming companies.

“Keeping the blinders on and not worrying about who is acquiring whom, and focusing on profit, is the only way to go,” he said, talking about the company’s strategy going forward.

The move marks a strategic pivot for Unacademy, which—like many others during the peak of the pandemic—experimented with aggressive M&A to scale. Its notable acquisitions include firms like TapChief, Rheo TV, Swiflearn, and various others, including smaller startups like Kreatryx, CodeChef, and PrepLadder.

Now, the company is sharpening focus on internal capabilities, with a clear set of goals for the coming year: making the core business profitable, building globally relevant tech products like Airlearn and Graphy, and maintaining execution discipline, Munjal said.

Among Unacademy’s fastest-growing products is Airlearn, a globally targeted tool developed in India that has reached 70,000 daily active users and achieved a $2 million annualised revenue run rate in the past year. The company also highlighted strong performance from Graphy and PrepLadder, which are now generating cash every month.

Offline learning continues to be a key bet as well. Munjal said nearly 70 percent of Unacademy’s physical coaching centres are expected to be profitable at the unit level this year, with centres producing “amazing outcomes” in high-stakes exams like JEE, NEET and UPSC.

This comes months after reports surfaced that Unacademy was in extended discussions with offline test preparation centre Allen Career Institute for a potential sale that could value the edtech firm at $800 million, a sharp decline from its peak valuation of $3.4 billion – though Munjal categorically denied any acquisition talks.

The company reported Rs 988.4 crore in total revenue in FY24, down 5 percent from Rs 1,044 crore in FY23. Unacademy, meanwhile, cut its losses by 62 percent during the year to Rs 631 crore, from Rs 1,678 crore in the previous year.