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Simplilearn cuts losses by 56% in FY24, revenue growth stagnates

EntrackrEntrackr · 6m ago
Simplilearn cuts losses by 56% in FY24, revenue growth stagnates
Medial

Upskilling-focused edtech platform Simplilearn reduced its losses by over 56% year-on-year in the last fiscal year. However, the company's operating scale showed only single-digit growth, remaining largely flat. We will explore the expense pattern that significantly reduced losses later. For now, let's focus on the revenue streams and their growth. Simplilearn's revenue from operations grew by 9.6% to Rs 749.77 crore in FY24, from Rs 683.98 crore in FY23, according to its consolidated financial statement sourced from the Registrar of Companies (RoC). Simplilearn is a digital upskilling platform that provides training in cyber security, cloud computing, project management, digital marketing, and data science, among others. It offers post graduate programs, master's programs, and certification courses. The company's revenue was steered by its online self-learning programs, which surged by 7.8X to Rs 451.45 crore. Revenue from live virtual classes, however, declined by 51.97% to Rs 341.50 crore. Simplilearn also accounted for Rs 43.17 crore in discounts. The company made additional Rs 23 crore from interest income which pushed its total income to Rs 773 crore in FY24. On the expense side, the cost of materials (tutoring material and fees paid to educators) decreased by 13.27% to Rs 183 crore in FY24. Advertising expenses saw a significant reduction of 32.08%, amounting to Rs 204.79 crore. However, employee benefit costs rose by 12.66% to Rs 325.17 crore, whereas depreciation expenses nearly doubled to Rs 69.63 crore. Additionally, other expenses stood at Rs 96.91 crore. Overall, Simplilearn's total expenses decreased by 6.87% to Rs 879.50 crore in FY24, from Rs 944.40 crore in FY23. Due to significant cost cutting across advertising and educator fees, the Bengaluru-based company managed to reduce its net loss by 56% to Rs 106.7 crore in FY24. Its ROCE and EBITDA margin stood at -42.45% and -3.75%, respectively. On a unit basis, Simplilearn spent Rs 1.17 to earn a rupee in FY24. As of March 2024, the firm reported Rs 323 crore of current assets including Rs 235 crore of cash and bank balance. According to startup data intelligence platform TheKredible, Scaler has raised over $80 million to date and was valued at around $600 million in its Series E round led by GSV Ventures with participation from Clal Insurance, and DisruptAD, ADQ's venture platform. It majorly competes with Knowledgehut by upGrad, Scaler, Coursera, Great Learning, among others.

Treebo crosses Rs 100 Cr revenue in FY24, outstanding losses climb to Rs 488 Cr

EntrackrEntrackr · 6m ago
Treebo crosses Rs 100 Cr revenue in FY24, outstanding losses climb to Rs 488 Cr
Medial

Treebo crosses Rs 100 Cr revenue in FY24, outstanding losses climb to Rs 488 Cr Treebo Hotels, a premium-budget hotel chain, crossed the Rs 100 crore revenue milestone in the fiscal year ending March 2024. Despite this growth, the Bengaluru-based company saw its losses rise by 17%, bringing total outstanding losses to Rs 488 crore. Treebo Hotels’s revenue from operations grew 22.5% to Rs 109 crore in FY24 from Rs 89 crore in FY23, its consolidated financial statements filed with the Registrar of Companies show. Income from accommodation services (taken on lease and managed properties) formed 95% of the total operating revenue which increased by 22.3% to Rs 104 crore in FY24 from Rs 85 crore in FY23. The rest of the income comes from the sale of products, and subscription services. The company also added Rs 7.22 crore as other income (non-operating) which tallied its overall revenue to Rs 116 crore in FY24 from Rs 94 crore in FY23. Treebo spent 41% of its overall expenditure on employee benefits which increased marginally by 7% to Rs 59 crore in FY24. Its cost and commission surged 70% and 48% to Rs 17 crore and Rs 43 crore in the previous fiscal year. Its cost of materials, legal, technology, traveling, and other overheads took the overall cost up by 22% to Rs 144 crore in FY24 from Rs 118 crore in FY23. The increased advertising and commission costs led Treebo to raise its losses by 16.7% to Rs 28 crore in FY24, compared to Rs 24 crore in FY23. Its ROCE and EBITDA margin stood at -540% and -18.1% respectively. On a unit level, it spent Rs 1.32 to earn a rupee in FY24. The company’s total current assets stood at Rs 34 crore with cash and bank balances of Rs 7 crore in the previous fiscal. According to startup data intelligence platform TheKredible, decade-old Treebo has secured Rs 566 crore (approximately $70 million) in funding from investors including Accor, Elevation Capital, Matrix Partners, and Bertelsmann. The company’s most recent major funding, amounting to $16 million, was raised in June 2021. Treebo competes directly with Bloom Hotels and FabHotels. In FY24, Bloom Hotels saw its operational revenue rise by 73.6% to Rs 250 crore, with a profit of Rs 14 crore. FabHotels recorded Rs 224 crore in operating revenue for FY23 but has not yet filed its FY24 annual report.

Tiger Global-backed Groyyo’s growth stalls in FY24; losses climb

EntrackrEntrackr · 4m ago
Tiger Global-backed Groyyo’s growth stalls in FY24; losses climb
Medial

After achieving a 19X year-on-year growth in FY23, B2B manufacturing, and automation startup Groyyo saw its scale decline by 14.4% in the fiscal year ending March 2024. Moreover, the Tiger Global-backed company's losses increased by 9% during the same period. Groyyo’s gross revenue decreased to Rs 421 crore in the last fiscal year from Rs 492 crore in FY23, according to its consolidated annual financial statements accessed from the Registrar of Companies. Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo is a supply chain enablement platform that helps digitize manufacturing at small and medium businesses and match demand and supply from national and international clients. The sale of products was the main source of revenue for Groyyo. Collections from commissions and subscriptions were other revenue drivers for the Delhi-based company in FY24. For the B2B manufacturing and automation startup, the cost of procuring goods accounted for 78.65% of the overall expenditure. As the scale dipped, this cost decreased by 13.5% to Rs 409 crore in FY24. On the other hand, the cost of employee benefits surged by 81.5% to Rs 49 crore in the previous fiscal year (FY24). Its legal, advertising, write-off assets, traveling, and other overheads led the overall cost to Rs 520 crore in FY24, compared to Rs 578 crore in FY23. The dip in scale caused its losses to increase by 8.8% to Rs 74 crore in FY24 from Rs 68 crore in FY23. On a unit level, it spent Rs 1.24 to earn a rupee. Its ROCE and EBITDA margin worsened to -46.15% and -13.45% respectively. By the end of FY24, its total current assets stood at Rs 256 crore, including Rs 99 crore in cash and bank balances. Groyyo has raised over $50 million across debt and equity including its $40 million Series A round led by Tiger Global. The company was also reportedly in talks to raise $40 million. According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder followed by Tiger Global. Running up short on growth or margins can be a huge issue for a startup serving the market that Groyyo does, considering the intense competition and strong competitors in the game.

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