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Unacademy’s Loss Falls 40% FY2023
10mo ago
President_Trump
Stealth10mo
Someone got fired
DFV
SaaS10mo
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.
Changemaker
Stealth10mo
@DFV Real valuation should be $200 Million max
DFV
SaaS10mo
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.
DingDong
Razorpay10mo
They've laid off some many people silently. Losses had to come down. Unacademy is in deep shit because of their struggling businesses
MightyLazyGeekStar
Stealth10mo
They have a runway of 4 years. Can tweak stuff and be just fine
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