Unacademy founded by Gaurav Munjal told employees in an internal note – which has been reviewed by ETtech – on Monday the firm’s founder and top management will take a pay cut, and the company will also shut down its global exam preparation business,

Munjal, in his note, said the objective is to reduce costs and impact profits, while the SoftBank-backed company has Rs 2,800 crore in the bank.

“Even though we have over Rs 2,800 crore in the bank (as of this morning), we are not efficient at all. We spend crores on travel for staff and teachers. Sometimes it is needed and sometimes not. There are a lot of unnecessary expenses that we incur. We should cut all these expenses. We have a strong core business. “We should become profitable as soon as possible,” Munjal told his employees.

According to him, the founders have already taken a pay cut and the same will be implemented for the top management. “We will close some businesses that have failed to find product market fit (PMF), such as Global Test Prep,” he said.

This is the second note from Munjal for his team in recent months.
In May, he said the funding winter is here. And the company will have to change its ways.

“We have to do an initial public offering (IPO) in the next two years. And, we have (to have) cash flow positive. For that, we should adopt frugality as the core value,” Munjal added in his latest note.

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