SoftBank-backed edtech company Unacademy expects its revenue from core business (online test preparation) to decline 15 percent in the calendar year 2023, even as it sees a 26 percent growth on a company level, thanks to a robust stream from coaching centres, a sign that demand for online education dropped drastically post-Covid, while that for offline surged.
Unacademy expects a revenue of Rs 1,250 crore in 2023 on a consolidated basis, up from Rs 992 crore in 2022, Co-Founder and CEO Gaurav Munjal told employees in a message. During the period, it sees its core operating revenue dropping to Rs 620 crore from Rs 732 crore from 2022, he told employees.
Moneycontrol has seen a screenshot of the message.
According to Munjal's message, Unacademy expects to generate Rs 400 crore from offline centres in 2023, up from Rs 53 crore in previous year. With this, the offline centres will become the second-largest revenue stream for the edtech company, followed by PrepLadder, which is expected to garner Rs 200 crore in 2022, which will imply a 9 percent growth from the year earlier.
Graphy, a SaaS (software-as-a-service)-based platform under Unacademy's group companies is expected to grow 68 percent in 2023 and is seen clocking a revenue of Rs 30 crore, according to Munjal's message. Graphy helps creators to grow their audience, monetise their skills, and host live sessions and cohort-based course
Unacademy did not immediately respond to Moneycontrol's queries.
In the message, Munjal also said that the company is on the verge of achieving operating profitability and has thus managed to extend its runway to 116 months from December 2023. Unacademy has significantly lowered its expenses, thanks to 1,500 layoffs and other cost-cutting initiatives. Munjal said the company has more than Rs 2,100 crore in reserve.
“There is some chatter on the floor that Unacademy is not doing well. Let me clarify. This will be the best year for Unacademy since we started the company in 2015,” the CEO said in his message to employees.
“I have said this before and I will say it again. We will be the largest edtech company soon. We will be the last ones standing. A few rough patches here or there won't stop us,” he added.
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