Unacademy turns cash flow positive: CEO Gaurav Munjal says company has 4-year runway

The development comes at a time when rival Byju's has been struggling to raise cash and keep operations afloat

SoftBank-backed Unacademy turned cash flow positive in the April-June quarter, co-founder and CEO Gaurav Munjal has told employees at the Bengaluru-based edtech startup, which earlier resorted to layoffs and other measures to bring down costs.

Moneycontrol has reviewed Munjal's message, which he shared on the company’s Slack channel. Munjal also confirmed the developments on X (formerly Twitter).

This comes after the company undertook several cost-cutting measures, from layoffs to reducing benefits for senior executives, as reported earlier. It also comes at a time when rival, Byju’s has been struggling to raise cash and keep operations afloat.

“(The) AMJ quarter was cash flow positive for us. We currently have Rs 1,800 crore in the bank and a runway of four years/next year this will increase to eight years because we will further reduce our burn,” Munjal’s message read. He added that the company’s cash burn was down by 60 percent, but did not provide specific numbers.

Similarly, Graphy, a SaaS (software-as-a-service) platform under Unacademy's group companies which helps creators grow their audience, grew by 30 percent and is close to profitability.

Moneycontrol had earlier reported that Graphy, which was acquired by Unacademy in 2023, had turned operationally profitable for the month of December 2022. Graphy competes closely with Classplus, which as per Munjal is overvalued.

Despite the improvement in financial health, a slew of top executives have been leaving Unacademy over the past months. Unacademy chief financial officer (CFO) Subramanian Ramachandran was the latest to quit, as reported last month.

Ramachandran departure was after chief operating officer Vivek Sinha and chief of staff Abhyudayay Rana departed in September. The company's CMO Karan Shroff also quit last year.

The Tiger Global-backed startup was last valued at $3.14 billion and has raised over $880 million so far. Peak XV, General Atlantic and Blume Ventures are among the other backers of the company.