Unacademy’s Test Prep Business Welcomes New CEO

Edtech unicorn Unacademy has appointed Sumit Jain, the co-founder and CEO of its subsidiary Graphy, as the new CEO of its Test Prep division, as announced by co-founder Gaurav Munjal on X on Tuesday. Gaurav Munjal stated that he has known Sumit for 12 years, recalling the time Sumit was the CEO of CommonFloor when he acquired his first company, Flatchat. Sumit joined Unacademy as a co-founder in 2020 and has played a crucial role in enhancing the Unit Economics of the Test Prep Business and, most importantly, the Learner Experience.

Sumit Jain’s Background and Contributions

Sumit Jain, who previously co-founded the real estate platform CommonFloor and later Graphy, joined Unacademy in 2020 after the company acquired his startup, Opentalk. Since then, he has been leading efforts to bolster financial discipline and improve product experience within the test preparation sector, which is central to Unacademy’s operations.

Leadership Changes Amidst New Ventures

This leadership transition occurs as speculation arises regarding the original co-founders, Gaurav Munjal and Roman Saini, who are considering stepping back from daily operations to concentrate on their new venture, AirLearn. Notably, Hemesh Singh, the third co-founder, had already exited in mid-2023. Reports indicate that the three founders collectively held approximately 15% of the company’s stake according to the latest reported cap table.

Financial Overview of Unacademy

Despite a stagnant revenue trend in FY24, Unacademy successfully reduced its yearly losses by about 62% to Rs 631 crore. The company has also managed to decrease its annual cash burn in its core business, bringing it down from over Rs 1,000 crore three years ago to under Rs 200 crore this year.

In April, Gaurav Munjal revealed that Unacademy has around Rs 1,200 crore in reserves, demonstrating financial stability. Furthermore, subsidiaries like Graphy and PrepLadder are reportedly generating positive cash flows on a monthly basis.