Unacademy, a unicorn in the Edtech space, has let go of 250 workers in an effort to improve productivity.
Although the layoff was confirmed, the precise number of affected employees was not disclosed by the company spokesperson.
“As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” the company spokesperson said in a statement.
The layoffs occured while negotiations to merge the SoftBank-backed company with K12 Techno, the operator of the Orchids International School chain, are ongoing. This was covered exclusively by Entrackr last month.
10% of Unacademy’s staff was let go in March 2023. 145 employees of its group company PrepLadder, which provides NEET PG preparation, were laid off in May of this year.
Nevertheless, Hemesh Singh, the company’s co-founder and chief technology officer, left a few weeks ago, coinciding with the Unacademy development.
In August 2021, Unacademy completed a $440 million equity round at a $3.44 billion valuation. The company has undergone a number of changes since then, including large-scale layoffs and the closure of verticals that were acquired.
It has, however, also opened a number of offline centers. The company recently released a new app to enter the language learning market.
During the March 2023 fiscal year, Unacademy saw a 26% increase in operating revenue to Rs 907 crore, while losses were reduced by almost 40% to Rs 1,004 core. The company also stated at the start of FY24 that it was almost at group profitability. The audited annual report for FY24, the most recent fiscal year, has not yet been filed by the firm.
In the last several years, edtech companies have faced many difficulties. Edtech companies raised a mere $138 million in 21 deals in the first half of 2024, according to media. In terms of snatching up investment in 2021 and 2022, the segment led the Indian startup ecosystem, but right now, financing appears to be extremely difficult for any edtech startups, particularly in light of the fact that the segment’s posterboy, Byju, is facing bankruptcy.
