FY23: Surging Revenue, Reduced Expenses

Edtech unicorn Unacademynarrowed its losses by almost half and increased its operating revenue in FY 2022-23 compared to the previous fiscal year, benefitting from curtailed expenses. The Bengaluru-based firm reported a consolidated loss of Rs 1,678.1 crore in FY23, a fall of 41.1% from Rs 2,847.9 crore recorded in the earlier fiscal period. Meanwhile, its operating revenue surged 26.1%, touching Rs 907 crore in FY23 compared to Rs 719.2 crore in FY22, as per its recent consolidated financial statements. The startup’s total income, including interest income from current investments amounting to Rs 122.4 crore, reached Rs 1,044.3 crore in the financial year that ended this March—up from Rs 844.7 crore in the previous fiscal year. The Gaurav Munjal-led firm benefitted from curtailed expenses—with overall expenditure down 26.2%. Its total expenses fell to Rs 2,734.2 crore in FY23, compared to Rs 3,702.8 crore in FY22.  The edtech company allocated Rs 1,281.2 crore to employee benefits in FY23—a 27.7% drop from the Rs 1,771.6 crore spent in the preceding financial year. Despite the reduction, it remains the largest expense category. The reduced employee benefit expense can be seen as a reflection of multiple rounds of layoffs, salary reductions among senior leadership, and a wave of senior-level departures from the company.  The firm also managed to reduce its other expenses, such as advertising promotional expenses, by 32.5% to Rs 370.2 crore in FY23 from Rs 548.7 crore in the previous fiscal year.