Unacademy-owned Graphy turns operationally profitable for December 2022: CEO Sumit Jain

Sumit Jain, CEO at Graphy

Unacademy-owned Graphy has turned operationally profitable for the month of December 2022, the SaaS-based platform's co-founder and CEO (chief executive officer) Sumit Jain said in a tweet on January 3.

The development comes a month after Unacademy's chief Gaurav Munjal took a dig at the valuation of ClassPlus, a direct competitor of Graphy, currently valued at $500 million.

Launched in 2018 by co-founders Jain, Sushil Kumar, and Shobhit Bakliwal, Graphy is a SaaS (software-as-a-service)-based platform under Unacademy's group companies for creators to grow their audience, monetize their skills, and host live sessions and cohort-based courses.

"Graphy turned EBITDA+ in December," tweeted Jain on the evening of January 3.

Graphy turned EBITDA+ in December

— Sumit Jain (@sumjain) January 3, 2023

Moneycontrol could not independently verify the claim as the company's monthly statements are not made public. Unacademy did not comment on the story.

According to MCA (Ministry of Corporate Affairs), Graphy has last posted its FY22 financials. According to that data on MCA website, while Graphy recorded Rs 8.86 crore in revenue in FY22 (2021-22), its losses stood at Rs 3.6 crore. The company recorded close to nil tax expenses in the fiscal.

Earlier in November, Unacademy's Munjal pegged a bet on Graphy, a company it acquired in 2021 at a time when two of Unacademy's growth verticals--job guarantee vertical Relevel and NEET PG learning platform PrepLadder, have come under fire.

With schools, colleges, and physical tuition centers reopening, Unacademy's core test preparation business has slowed down this year, forcing the company to aggressively take cost-cutting measures. The company has already fired over 1,000 employees since the start of this year and has halved its team by exercising internal migration.

Amid slowing growth in the core business, an investor had earlier told Moneycontrol that a lot hinges on how Unacademy's acquisitions like Graphy perform in the coming few years as it looks to grow beyond the pandemic-led boost.