Bengaluru based edtech startup Unacademy has recorded 5% decline from 1,044 in FY2023 and they reported a total revenue of 988 crore. This sudden fall is indicating a slowdown in its online business. During the pandemic, this online platform has witnessed a significant growth.

The unicorn startup which has been a member of the unicorn club has increasingly shifted towards offline learning models as the edtech sector lost traction as schools and coaching centers reopened after the pandemic.

After this decline the edtech unicorn is continuously trying to cut down the cost of the company and improve its overall financial condition of the company.

A key highlight for Unacademy in FY24 was a 62% decrease in net losses, with the company reporting a loss of 631 crore compared to 1,678 crore in FY23. This reduction is largely due to various cost-cutting measures, including layoffs and significant operational restructuring.

Additionally, Unacademy’s EBITDA loss improved, falling to 489 crore in FY24 from 1,553 crore the previous year.

Unacademy implemented cost-cutting measures across several major expense categories. For example, employee benefit expenses fell by 58% to 539 crore in FY24, largely due to layoffs and restructuring. The company reduced its workforce by 250 employees in 2024 to streamline operations.

Advertising and marketing expenses also declined significantly, decreasing by 34% to 244 crore. Furthermore, educator charges—another major expense—were reduced by 23%, bringing them down to 436 crore.

Till March 2024, Unacademy had received 1,573 crore in cash and cash equivalents. The company has not yet secured any fresh funding till their series H funding round in Aug 2021, in which they secured $440 million, and the company was valued $3.44 billion.

Assuring about the revenue condition of the company Gourav said, “To set the record straight, Unacademy will have its best year in terms of growth and profitability. We also have many years of runway.”

The company is hopeful that the cost cutting process will continue to uplift their financial condition in FY25 and beyond. The company will continue to grow through offline test-preparation centers and other initiatives.