Unacademy’s Loss Falls 40% FY2023

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Unacademy’s FY23 Loss Falls 41% To INR 1,678 Cr, Posts INR 907 Cr Revenue

03 Jan'24 | By Debarghya Sil

11mo ago

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SparklyRaccoon

InMobi11mo

Could be a massive comeback story if they recover all the way up from here

FluffyNugget

Plivo11mo

Can’t keep doing layoff to boost that number tho :P

PrancingNugget

Stealth11mo

Someone got fired

PeppyCoconut

Stealth11mo

So just about a 100mil topline, last round price from 2021/22 was 3.5 billion (yes, the one with a B). With no online moat and a fairly crowded offline market that they sought to disrupt or replace in the first place, why would someone pay a 35 times multiple on a loss making (3:1 spend to revenue ratio) business with next to no moat.

Sure if they turn around and become a profitable enterprise they will need to reach half a bil in revenues to grow into its price. All of this sans the glamour of "disruption" or change or impact.

What the above means for them? Grow at 50% each year (for four years) while improving economics. Next few years will show if they can earn money or make money.

JumpyLlama

Stealth11mo

@DFV Real valuation should be $200 Million max

PeppyCoconut

Stealth11mo

I would say even lower, nothing more than 1x. Lot of sector risk, plus no moat. For context when Blackstone acquired 37.5% in Akash Education, it was approximately at a 4x revenue multiple. And that is a legacy, profitable business which has shown it can grow multifold in revenue over the years. Unacademy has no moat left, is loss making and been around long enough to make money now and not just earn it.