Tough time ahead for Edtech Unicorns

The golden era for the ed-tech industries is fading-up with the post Covid-19 effect and the world will be a combination of online and offline, with the omnichannel model being sustainable going forward.

Many online education providers prefer to offer a mix of online and offline classroom teaching as students come back to schools, colleges. Offline learning is not going away anytime soon. In fact, online complements offline really well, and together as a package, the omnichannel model is going to steer and be here for a long period of time.

Recently, edtech firm Unacademy has issued memo to employees to drastically cut down leisure expenses, management salaries and close some businesses including Global Test Prep so as to focus on profitability.

Below are some key excerpts that Founder and CEO of Unacademy Gaurav Munjal shared in the memo:

“We have a strong core business. We must turn profitable ASAP.

Few changes moving forth:

· Meals will not be complimentary across our offices.

· We will put strong guidelines for travel/ no business class travel for anyone including CxOs and educators can pay from their own pockets if they want an upgrade.

· Certain privileges like dedicated drivers for CXOs will be removed.

· Founders and management will take a salary cut/founders have already taken a cut/we will implement a cut for management as well.

· We will be shutting down certain businesses that have failed to find PMF like Global Test Prep

This is the final frontier that we have to conquer. Profitability. And once we do, it will change the game for us.”