This is aimed at reducing costs significantly and hitting profitability even as the SoftBank-backed company has Rs 2,800 crore in the bank, Munjal said in his note.
“Even though we have more than Rs 2,800 crore in the bank (as of this morning), we are not efficient at all. We spend crores on travel for employees and educators. Sometimes it’s needed, sometimes it’s not. There are a lot of unnecessary expenses that we do. We must cut all these expenses. We have a strong core business. We must turn profitable asap,” Munjal told his employees.
According to him, the founders have already taken a pay cut and the same will be implemented for its top management. “We will be shutting down certain businesses that have failed to find the product market fit (PMF) like the Global Test Prep,” he said.
This is the second note from Munjal to his team in recent months.
In May, he had said the funding winter is here and the company must change its ways.
“We have to do an initial public offering (IPO) in the next two years. And, we have (to) turn cash flow positive. For that, we must embrace frugality as a core value,” Munjal added in his latest note.
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