In the fiscal year FY23, edtech startup Cuemath saw its consolidated net loss expand by 8% year-on-year (YoY), reaching Rs 234 crore, compared to a loss of Rs 216.6 crore in the previous fiscal year. The increase in Cuemath’s net loss was concurrent with a 14% decline in revenues. Revenues dropped to Rs 126 crore in the financial year ending in March 2023, down from Rs 148 crore in the prior fiscal year.
During the period between March 2021 and March 2022, Cuemath’s expenses surged 1.6 times due to factors such as employee benefit costs and legal fees. However, in the most recent fiscal year, total expenses reduced to Rs 360 crore from Rs 369.6 crore in FY22. While Cuemath managed to trim its expenses slightly, its financials clearly indicate a decrease in business sales, impacting the top line. A significant portion of its total income, around Rs 119 crore, was generated through teaching services. This marked a decline from the previous year when Cuemath earned nearly Rs 132 crore from teaching. The remainder of its income was derived from franchisee fees revenue, fees from teacher onboarding, and the sale of educational materials.
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Established in 2013 by Manan Khurma and Jagjit Khurma, Cuemath offers online learning programs with a focus on mathematics for K-12 students. In the challenging landscape for K-12 (kindergarten to class 12) edtech companies, Cuemath, backed by Peak XV Partners and Alpha Wave Global, recently made the decision to reduce costs by laying off 100 employees. This move followed a similar action taken in May of the previous year. Cuemath’s Founder and CEO, Manan Khurma, communicated to employees in an email, stating, “Unfortunately, our revenue and cost trajectories are still divergent from expectations, and our problems are compounded by the bad macro situation around capital availability, particularly for edtech. This means that we will have to move to a leaner team structure, in which some roles will get redundant. That exercise is being carried out today.” Cuemath had raised $57 million in June of the previous year at a valuation exceeding $400 million.
