The Indian edtech behemoth Unacademy is laying off about 250 employees. After schools reopened all over the country following the epidemic lockdowns, this is the most recent in a sequence of employment layoffs at the corporation.
A person familiar with the matter reports that the Bengaluru-headquartered firm, valued at $3.4 billion in its latest financing in 2021, is letting go of 100 workers in marketing, business, and product, and around 150 in sales. Since the second half of 2022, Unacademy’s overall employment losses from the layoffs have come to almost 2,000.
The Unacademy spokesman verified the layoffs but refrained from discussing the exact number of affected people.
According to the spokesman, the reorganisation effort was “necessary” to keep the business on target for profitability. The company’s investors include General Atlantic, SoftBank, and Peak XV.
Two individuals familiar with the subject informed Eltrys that the layoffs coincide with a possible merger conversation with K12 Techno, the owner of Orchid International, two school chains.
As students enrolled in classes in large numbers during the epidemic lockdowns, edtech companies nationwide experienced a surge in profits. Once schools reopened, however, these companies saw enrollment collapse. Especially the unexpected fall of Byju’s, formerly the most valued startup in the country, has somewhat eroded industry trust.
Last month, Prosus, the biggest outside investor in Byju’s, reduced its 9.6% share of the business to zero due to mounting problems with governance and management at the Indian company.
Offering online classes for India’s most competitive tests, Unacademy has been decreasing expenses for two years while simultaneously growing its physical presence and experience. Last week in an X discussion, co-founder and CEO of the firm, Gaurav Munjal, emphasised that companies establishing themselves in India absolutely must have an offline strategy.
He also stated businesses received money in 2021 at “bloated” values, noting, “This is not a market correction. This is how things really work. This was not the case in 2021.
He further stated that Byju failed because its creator “didn’t listen to anyone.”
After elevating himself to a pedestal, he stopped listening. Munjal advised against writing in such a manner. Always avoid doing it. While you shouldn’t focus on everyone, it’s important to have someone who can offer direct criticism. 
