Friends, we all know that there was a lot of loss in 2020 due to Corona in India, and as a result, many people lost their jobs, and many large companies suffered financially.
However, there were many startups in Lockdown that benefited greatly from this pandemic, and they are now earning a lot of profit in addition to sustaining themselves in the market. We can add Unacademy to the list of profitable startups.
In order to understand Unacademy’s business model in a better way, you must first recognize that it was founded on a very small scale.
In fact, Gaurav Munjal, the founder of Unacademy, started a YouTube channel in 2010 and, as the channel’s popularity grew, he started this startup with his two friends Hemesh Singh and Roman Saini in 2016.
In today’s time, Unacademy has grown as the biggest giant in the field of online education in India.
How Unacademy Earns Money?
As previously said, when Unacdemy was founded, this startup initially provided free access to all of its courses via YouTube, and by doing so, this platform generated a lead for itself, and the same lead eventually succeeded in converting their paying subscribers as well.
When it comes to Unacademy’s main revenue source then it actually comes from the paid and premium courses that they create. By selling all these courses this platform earns a huge amount of money.
It’s not that Unacademy’s platform makes money solely by selling premium courses; the company also plans to sell many certification courses in the future to expand its revenue model but all these models are currently are in a trial mode.
As we all know, many people in India are very enthusiastic about certification courses and that is why in near future Unacademy can also become a good option for them and the revenue of Unacademy will definitely increase by doing this at all.
If we look at Unacademy’s revenue then it has earned more than 20 million rupees in 2019-20, but the company’s business increased very well in 2020-21, and the system makes about 120 Million rupees and from which we can easily predict that the growth of the company can happen easily even in the financial year of 2021.
What is the main reason behind the success of Unacademy?
Friends, when Unacademy first approached in the domain of education, Byjus was already well-established in India, and as a result, Unacademy company’s founders had already taken care of numerous difficulties and that is the main reason why Unacademy has gained lots of success in the domain of online education.
Unacademy’s founders were well aware that Byjus is quite active in NCERT courses and that competing with them would be foolish.
That is the main reason why the company has broadened its boundaries and established a name for itself in the field of competitive examinations and now in today’s times, this educational platform has grown to become India’s largest online education platform.
What are the Main Expenditure of Unacademy?
Friends, we all know that Unacademy’s platform employs a large number of people in today’s time and the company’s management team is also rather large, so it’s understandable that the company does indeed have a lot of expenses.
So, in the next part of this post, we’ll try to give you some detailed facts regarding Unacademy’s expenditures.
In this article, we have separated Unacademy’s Expenditure into three parts. The first cost is for creating content the second is for web development, and the third would be for marketing. Let us try to understand these key steps in greater depth.
(1) Content Creation Cost
We all know Unacademy’s major income strategy is selling premium courses, and in order to make premium courses, a lot of content has to be created in video format, which means Unacademy has to do lots of videography and editing.
A significant team should be hired, and its costs must also be covered. Along with this, educators should earn a substantial amount of money for each lecture, resulting in a significant increase in Unacademy’s overall content creation expenses.
Apart from Educators and Video Editors, the company also recruits many management staff to manage its applications and other things. Along with this, software engineers also have to pay salaries and for this reason, we can easily say that the internal cost of Unacademy is very high.
(2) Web Development Cost
Unacademy features its own educational application, as well as a specific application for prospective educators. All of these applications and web development are very expensive.
Apart from that, Unacademy’s application primarily works with live lectures, which necessitates the usage of a large web server and cloud system to store all of these lectures, resulting in an increase of a significant amount of cost.
Apart from the cost of web development, the free courses from Unacademy are also uploaded on YouTube, and they have to spend for these as well.
Apart from content development, marketing is also considered to be one of the biggest expenses of the company, as we have seen the organization spend lots of money on their marketing campaign through sponsoring various events and sports games like IPL, etc.
Unacademy has been very active in marketing since the beginning, and whenever the company has received funding, it has spent the majority of the money on web development and marketing, as a result of which Unacademy has become a very well known name in the field of education in each and every Indian household.
Final Words on Unacademy Business Model
Friends, we really hope that you have liked this article related to Unacademy Business Model really very much.
If you have any queries regarding this article, then you can share them with us by commenting in the comments section.
Share this article with your friends.
If you have liked this article, then kindly please share it with your friends via various social media platforms. Thank you so much for sharing your valuable time with us and reading this article till the end.