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Winter is here, we must focus on profitability at all costs, Unacademy CEO Gaurav Munjal tells employees

Munjal tells employees to learn to work under constraints, saying the funding winter is here

May 26, 2022 / 12:19 PM IST
Unacademy CEO Gaurav Munjal.

Unacademy CEO Gaurav Munjal.

SoftBank-backed edtech unicorn Unacademy founder and chief executive officer Gaurav Munjal has told employees to learn to work under constraints, saying the funding winter is here.

He said, “We are looking at a time where funding will dry up for at least 12-18 months. Some people are predicting that this might last 24 months,” on May 26. “This is a test for all of us. We must learn to work under constraint,” he added.

“We have a different Iconic Goal this time. The Goal is of Profitability. The Goal is of generating FCF,” he added.

Munjal told his employees and management that it is time to adapt and focus on Profitability at all Costs. He added, “We must survive the Winter,”

To become profitable, he suggested steps like cutting down on Brand Marketing and focusing on Organic Growth Channels instead.

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Munjal also aims at making every test prep category profitable in the next three months and Unacademy Centres by FY23.

In the letter, he said, “All incentives for Educators that are not linked to Revenue have been completely removed or are in the process of getting completely removed.” “Travel only if it is absolutely needed. Meetings that save travel cost and that can happen on Zoom, should happen on Zoom,” he added.

According to Munjal, Unacademy, in his memory, was never resource-constrained. “We always raised more money than what was needed. This allowed us to continuously experiment and grow our Platform without worrying about when we will run out of money,” he added.

Last month, Unacademy had laid off around 600 employees, which accounts for about 10% of its workforce, in a possible move to cut costs ahead of a potential funding slowdown in the country.
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Mansi Verma
first published: May 26, 2022 11:35 am
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