Jobaaj Stories
Unacademy, one of India's most well-known Edtech unicorns, has reported a massive 93% YoY surge in net losses in its FY22 financial results publication.
The company reported a net loss of Rs 2,848 crores for FY22, which was 93.2% higher than the loss of Rs 1,474 crores reported in FY21. It had a negative EBITDA of Rs 2,742 crores during FY22, 84.2% higher than the figure reported in FY21. Such growth in losses was on account of higher expenses during the year, especially ESOP.
Indiafirst life insurance files DRHP to SEBI, read the company financials.
The Edtech unicorn's employee benefit expenses, including ESOPs, jumped 137% to Rs 1,772 crores which accounted for 33% of total expenses. Total expenses registered an 82.4% increase to touch Rs 3,703 crores. This could be considered a reason why the company announced in July 2022 that it was undertaking strict cost-cutting measures.
Not everything was bad as Unacademy saw an 80% surge in operating revenues from Rs 398 crores reported in FY21 to Rs 719 crores in FY22, even though several institutions resumed live classes.
"Yeah. We spent a lot in FY22 to gain market share. Burn is under control now though. We have massively fixed our unit economics in the last few months." Unacademy founder Gaurav Munjal said in a tweet.
In July 2022, the company announced that it was considering the launch of its IPO in the next 2 years.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
