Unacademy is an e-learning platform that aims to be an online knowledge repository that is both comprehensive and multi-lingual. It is part of the edutech sphere, and is headquartered in Bangalore. At first, Unacademy was a YouTube channel that commenced in 2010 with Gaurav Munjal at the helm.
In 2015, he was joined by his current partners, Hemesh Singh and Roman Saini. Roman Saini was once part of the Indian Administrative Services (IAS). Unacademy has around 10,000 well-qualified educators on its rolls, and over 13 million users have signed up for its services. In addition to its portfolio of academically inclined courses, it also offers skill-building classes such as computer programming, photography, etc.
This Unacademy case study will attempt to decode its business model and the reasons behind its success.
Unacademy Business Model:
Unacademy manages six different YouTube channels for various disciplines, such as for coaching JEE and UPSC aspirants. They have 8 million subscribers and over 250 million views for their content.
A significant portion of Unacademy’s revenue comes from the ‘freemium business model’ that it follows. In a freemium business model, a company will offer some of its services for free. While all the classes it hosts are free of charge, those paying the subscription fee will have access to an ad-free experience and live classes exclusive to its paying members.
You can also check this out The Face Of Ed-Tech – Byju’s Case Study
Services Offered by Unacademy:
Unacademy has many offerings under its belt. Some of these are:
- Exam preparations for Staff Selection Commission (SSC) and banks.
- Exam preparations for the Indian Railways.
- Exam preparations for the Defense Forces
- NEET and JEE Entrance exam preparations.
- Chartered Accountancy and Company Secretary exams.
How Do the Numbers Stack Up?
According to entrackr, Unacademy’s revenue increased to 380 crores in FY 202-21 from 62 crores in FY 2019-20, subscription revenue. The most considerable expense for the EdTech firm in 2021 was employee benefits – accounting for 38% of its annual costs. Unacademy had to spend 5 rupees to earn 1 rupee. Thus Unacademy was burning through a lot of its cash reserves then.
But the outlook isn’t all gloomy for the EdTech industry. It is experiencing an annual growth of 16.3% and will grow two and a half times by 2025, with expenses on EdTech expected to touch $404 billion.
As observed in the Unacademy case study, its journey has seen it come a long way from being just another EdTech firm on the horizon. Its expectations have been greatly surpassed in terms of overall growth and finances. The credit for it must go to the willingness of the founders to adapt to the changing times and market dynamics.
Unacademy must hold steadfast in the face of the current headwinds and focus on developing the business well. They do have the ability to pull it off, and Unacademy has the potential to remain a strong contender in the EdTech industry and continue to guide the many students who have placed their hope on it.