Edtech firm Unacademy has decided to drastically cut down leisure expenses, management salaries and close some businesses including Global Test Prep to focus on profitability. In a note to employees, founder and CEO Gaurav Munjal said that Unacademy staff will not receive complimentary meals and snacks at the office. Here’s the key excerpts from the memo sent by Munjal to the staff:
Until now we have never had frugality as one of our core values. Honestly since we were focused on growth and the fact that we had raised millions of dollar capital it wasn’t a priority. But now the goal has changed. We have to do an IPO in the next two years. And we have turn cash flow positive. For that we must embrace frugality as a core value.
Even though we have more than Rs 2800 crores in the bank (as of this morning), we are not efficient at all. We spend crores on travel for employees and educators. Sometimes it’s needed, sometimes it’s not. There are a lot of unnecessary expenses that we do. We must cut all these expenses.
We have a strong core business. We must turn profitable asap.
Few changes moving forth:
– Meals will not be complimentary across our offices.
– We will put strong guidelines for travel/ no business class travel for anyone including CxOs and founders/ employees and educators can pay from their own pockets if they want an upgrade.
– Certain privileges like dedicated drivers for CXOs will be removed
– Founders and management will take a salary cut/founders have already taken a cut/we will implement a cut for management as well.
– We will be shutting down certain businesses that have failed to find PMF like Global Test Prep
Now all of these changes might make it seem that we are in a bad state. Trust me. We are not. We are in a great state. This is the final frontier that we have to conquer. Profitability. And once we do, it will change the game for us.
We are well capitalised but still want our businesses to be profitable. And it will take Unacademy Group to a different league. Do I have your support to turn Unacademy Group profitable?