As the edtech unicorn Unacademy aims to go for an IPO in the next two years, the company has announced several measures to reduce costs significantly.
In an internal note to employees, Co-founder Gaurav Munjal said even though the firm has more than Rs 2,800 crore in the bank, the startup is not efficient at all. He added the company should embrace 'frugality' as a core value from now as they have to do an IPO in the next two years and for that, they have to turn cash-flow positive.
While founders have already taken a salary cut, management will also take a pay cut. Employees, including Chief Experience Officer, will not be provided business class treatment for travel. Dedicated drivers for top management will also be removed, the note said.
Also read:
The firm will also be shutting down certain businesses that have failed to find product-market fit like global test prep. The company is also stopping complimentary meals and snacks at their offices.
This is the second note from Munjal to his team in recent months. In May, he had said the funding season is here and the company must change its ways. This announcement also comes after in April, the edtech giant confirmed laying off around 600 employees/contractual workers. In an organisation of over 6,000 people across the group, this is about 10 percent of the workforce.
First Published: Jul 11, 2022 6:38 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
I.N.D.I.A. bloc committed to predictable and stable tax environment: Jairam Ramesh
May 21, 2024 6:33 PM
Exclusive | INDIA bloc will ensure stable policy framework, simple GST, end tax terrorism: Jairam Ramesh
May 21, 2024 5:02 PM
Cong leaders 'failed' to protect party's constitution says FM Nirmala Sitharaman in Bihar
May 21, 2024 4:01 PM
Who will succeed Modi? Oppn thinks Amit Shah will, but PM said this
May 21, 2024 2:38 PM