Unacademy's CFO Subramanian Ramachandran steps down

Edtech unicorn Unacademy's Chief Financial Officer (CFO), Subramanian Ramachandran, has stepped down from his role, a source aware of the development told Business Today.

Ramachandran's departure follows the resignation of the company's Chief Operating Officer, Vivek Sinha, just two months earlier.

A company spokesperson declined to comment on the development.

In addition to the top-level exits, Unacademy has been in the news for several rounds of layoffs in the past 18 months, reflecting the global slowdown in the education technology sector, particularly in the K12 segment.

Also read: Unacademy, Byju's IAS, Drishti IAS among 20 coaching institutes under scanner for misleading claims: Sources

In November 2022, the company terminated 350 employees, amounting to approximately 10 percent of its workforce. This was subsequently followed by another round of layoffs in March this year, which resulted in a reduction of another 12 percent, or about 380 employees.

As recently as last week, Unacademy's software-as-a-service platform, Graphy, downsized its workforce by approximately 20-30 percent, affecting nearly 40-50 employees.

Established in 2015 by Gaurav Munjal, Roman Saini, and Hemesh Singh, the company provides specialized courses on cracking competitive examinations. The Bengaluru-based company has secured approximately $860 million in venture capital investments till date, with its latest valuation standing at $3.4 billion.

Globally, the appetite for online education has waned as traditional brick-and-mortar schools have reopened. This, combined with the current funding crunch, escalating interest rates, and economic uncertainties, has resulted in a significant investment decline into this sector.

Total venture capital funding in India’s edtech sector has witnessed a significant decline in the first seven months of 2023, reflecting a global trend.  

From January 1 to August 7, edtech investments plunged by 48 per cent to $971 million compared to $1.87 billion in 2022, according to a report from data intelligence platform Tracxn. This also marks a 50 per cent decrease compared with 2021. Furthermore, the number of funding rounds in 2023 experienced a drop of 77 per cent compared to 2022 and an 82 per cent from the same period in 2021.  

The biggest of the edtech issues is being played out Byju’s which has been accused of numerous allegations of misgovernance. Over the past two years, Byju’s has witnessed the departure of several top-level executives, including its India CEO Mrinal Mohit, alongside the termination of thousands of employees. Three board members stepped down from the company and its statutory auditor Deloitte Haskins resigned. Byju’s has subsequently appointed Arjun Mohan, former CEO of upGrad, to lead the company through a restructuring of its operations.