Vedantu’s net loss declined 58% to INR 157.52 Cr in FY24 from INR 372.64 Cr in the previous fiscal year on the back of growth in its top line and improvement in margins
The startup’s revenue from operations increased 21% to INR 184.50 Cr from INR 152.59 Cr in FY23
The edtech startup managed to reduce its expenses by 34% to INR 367.79 Cr from INR 553.09 Cr in FY23
Edtech unicorn Vedantu’s net loss declined 58% to INR 157.52 Cr in the financial year 2023-24 (FY24) from INR 372.64 Cr in the previous fiscal year on the back of growth in its top line and improvement in margins.
The startup’s revenue from operations increased 21% to INR 184.50 Cr from INR 152.59 Cr in FY23. Including an other income of INR 14.73 Cr, total revenue for the fiscal stood at INR 199.23 Cr.
Founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, Vedantu
is an edtech startup which offers online and offline courses for students in 4th class to 12th class. It also provides coaching for NEET and JEE entrance exams. Recently, it started offering curated courses for kids of 4 to 12 years of age.
The startup entered the unicorn club after it raised $100 Mn in its Series E funding round led by ABC World Asia. In September 2024, the startup bagged $2.4 Mn in a mix of debt and equity financing from Stride Ventures Debt Fund II.
Where Did Vedantu Spend In FY24?
The startup managed to reduce its expenses by 34% to INR 367.79 Cr from INR 553.09 Cr in FY23.
Employee Expenses: The major decline in Vedantu’s expenses came due to a sharp fall in its employee costs due to the layoffs it undertook in FY23. In 2022, the startup fired about 1,100 employees in total. As a result, its employee benefit expenses slumped 44% to INR 175.76 Cr in FY24 from INR 313.58 Cr in the previous fiscal year.
Advertisement & Promotional Expenses: In a bid to cut down its losses, Rapido trimmed its promotional expenses by 70% to INR 22.84 Cr in FY24 from INR 76.06 Cr in the previous fiscal year.
Miscellaneous Expenses: The spending under the head, which included outsourcing teachers cost, courseware expenses, student welfare expenses, among others, also saw a decline. Vedantu spent INR 81.78 Cr on miscellaneous expenses, down 20% from INR 102.73 Cr it spent in FY23.
Vedantu competes with the likes of Unacademy, Allen Career Institute, among others. The country’s edtech sector has been under stress for over the last two years. BYJU’S, once the poster boy of the Indian edtech space, is currently undergoing insolvency proceedings.
Amid these, reports said that Unacademy was in talks with Allen for an acquisition. However, Unacademy CEO and cofounder Gaurav Munjal refuted this. The edtech startup reduced its net loss by 82.09% to INR 285 Cr in FY24 from INR 1,592 Cr in the previous fiscal. Meanwhile, its operating revenue also dipped 2.31% to INR 716 Cr in FY24 from INR 733 Cr FY23.
