Unacademy has consistently been in the news either for raising millions in funding or continuing its acquisition spree. The edtech giant raised Rs 1,965 crore and acquired eight companies in the fiscal year ending March 2021. Unacademy has now filed its financial results for FY2021, which shows the company in a different light, involving numbers, revenues and losses.
Unacademy's financial results highlight the company's growth, surging revenues as well as losses as compared to the fiscal year 2020. Entrackr decoded the numbers to show how the fared amidst its acquisitions and scaling up.
Revenue, losses surge 6X
Breakdown of Unacademy revenue revealed that the company's operating revenue surged 6.1 times year-over-year to Rs 398 crore in FY21 from Rs 65 crore in FY20. The highest collections came from paid subscriptions, which skyrocketed 95.7 percent to Rs 380.8 crore in the current fiscal compared to Rs 61.5 crore in FY20. Unacademy made Rs 7.92 crore from sale of educational material and Rs 9.01 crore from advertising and other related operations.
The expense report showed highest spending on employee benefits, which was the largest expense for the company. In FY21, employee benefits payout surged 6.2 times YoY to Rs 748.5 crore from Rs 120 crore in FY20. Educator payouts also spiked 4X YoY to Rs 541.3 crore, which was the second largest expense for the company in FY21. It was Rs 136.4 crore in FY20.
The third-largest expense contributor was Rs 414 crore, up from Rs 113.4 crore in FY20. Unacademy's official sponsorship for IPL and other advertisement and sales promotions contributed towards marketing expenses.
Other expenses in the report were legal professional fees (Rs 93.5 crore) and technical costs (Rs 93.6 crore) in FY21.
By this calculation, Unacademy's total expenses in FY21 surged 4.5X to Rs 2,030 crore from Rs 452 crore in FY20. On a unit level, Unacademy spent Rs 5.1 to earn Re 1 in revenue during FY21, Entrackr explained.
The company's annual losses surged nearly 6 times to Rs 1,537.5 crore while EBITDA margin stood at -320.3 percent.
In comparison, Unacademy reported a net loss of Rs 300 crore and Rs 386.7 crore expenses in FY20 as compared against Rs 112 crore in expenses and Rs 90 crore net loss in FY2019.
Bengaluru-based edtech platform Unacademy was founded by Munjal, Saini, Hemesh Singh, and Sachin Gupta in 2016. It currently has over 50,000 registered educators and more than 62 million learners. The startup offers learnings in 14 languages across 5,000 cities.