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Unacademy, an edtech startup, has said its employees to focus on profitability at all costs and has urged them to learn how to work under constraint.
Unacademy CEO, Gaurav Munjal, wrote an email to employees stating, “Winter is here.” The company has predicted a dry funding spell across the industry for 12 to 18 months, which may even last for 24 months, TechCrunch said in its report. “We must adapt. This is a test for all of us. We must learn to work under constraints. We must focus on profitability at all costs,” the CEO wrote.
Unacademy, in recent months, has taken steps to cut costs. According to TechCrunch, Munjal disclosed that the company has cut down its brand marketing budget and will focus on organic growth channels. It has further announced the removal of all incentives for educators that are not linked to revenue. Munjal also hinted at travel cost cuts.
Munjal recalled a time when the company was never constrained, it raised money more than what it needed. He said that the company flourished in an environment where resources and capital were abundant. He said, Unacademy in 2018-19, found it difficult to raise money. However, Munjal said, “the company was not impacted because as always we had 30 months of runway.” It then raised a Series D round after 18 rejections. The company must now change its way, Munjal said in his statement.
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