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Scaler’s revenue climbs 5X to over Rs 300 Cr in FY23, losses up by 90%

EntrackrEntrackr · 1y ago
Scaler’s revenue climbs 5X to over Rs 300 Cr in FY23, losses up by 90%
Medial

Tech upskilling platform Scaler Academy secured $55 million led by Lightrock India just before the commencement of FY23. The capital helped the Bangalore-based startup leap 4.9X during the previous fiscal year ending March 2023. Despite the growth though, the losses of the firm saw a surge of 90% during the same period. Scaler’s revenue from operations increased 388% to Rs 317 crore in FY23 from Rs 65 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Launched in 2019, Scaler focuses on upskilling college students and tech professionals. The company offers an intensive six-month computer science course through live classes delivered by tech leaders and subject matter experts. The sale of educational services is the sole source of revenue for Scaler. The company also has a non-operating income of Rs 7.6 crore which took its total revenue to Rs 324 crore in FY23. In line with fellow ed-tech startups, employee benefits emerged as the largest cost center, accounting for 49% of the overall expenditure. This cost rose 2.7X to Rs 322 crore in FY23 from Rs 119 crore in FY22. Its rent, advertising cum promotional, information technology, legal and other overheads took the overall expenditure up by 2.7X to Rs 655 crore in FY23 from Rs 240 crore in FY22. See TheKredible for the detailed expense breakup. An increase of 2.7X in employee benefits and 2.2X in advertising costs led Scaler to record a loss of 330 crore in FY23, a 90% surge from Rs 174 crore in FY22. Its EBITDA margin stood at -96.9%. On a unit level, it spent Rs 2.07 to earn a rupee in FY23. Scaler has raised over $75 million across rounds and was valued at $710 million during its last round. According to the startup data intelligence platform TheKredible, Peak XV (formerly Sequoia Capital) is the largest external stakeholder with 22.52% followed by Lightrock India and Tiger Global. Its co-founders Abhimanyu Singh and Anshuman Singh cumulatively command 58.1% of the company. FY22-FY23 FY22 FY23 EBITDA Margin -256% -96.9% Expense/₹ of Op Revenue ₹3.69 ₹2.07 ROCE -791% N/A The high promoter holding augurs well for the medium and long term ambition of the firm, as it continues to tap into the huge upskilling opportunity in tech for engineers. With a thrust on individuals rather than corporate selling, the firm has also taken a different approach from some others, and will hope that marketing costs temper gradually as the brand builds a stronger case with strong word of mouth. FY24 numbers will be the real pathway to profitability for the firm, as they define its growth momentum and costs that are relatively more sticky.

Tech upskilling startup Scaler lays off 150 employees

EntrackrEntrackr · 1y ago
Tech upskilling startup Scaler lays off 150 employees
Medial

Tech upskilling startup Scaler has laid off around 150 employees citing long-term growth and sustainability. This is the first instance of layoffs at the Bengaluru-based company since its inception in 2019. “At Scaler, we’ve always believed that education is a primary human need, and tech education, more so. It is imperative that we look at how we operate for long-term growth and sustainability. As part of this, we have designed a new way of working to be able to achieve sustainable growth while delivering the best learning experience and outcomes for our learners – something that we’ve always been committed to,” said Scaler cofounder Abhimanyu Saxena, in a statement. “As part of this restructuring, we identified some functions/roles, primarily in marketing and sales, in the company that we had to part ways with…,” Saxena added. Saxena further added that this was not a performance-driven decision and the firm assures all those affected are provided with the necessary support to ensure a smooth transition. Moneycontrol reported the development first. Scaler focuses on upskilling college students and tech professionals. The company offers an intensive six-month computer science course through live classes delivered by tech leaders and subject matter experts. The firm has raised over $75 million across rounds from the likes of Lightrock India Peak XV Partners and Tiger Global. The firm last raised $55 million in Series B in February 2022 at a valuation of $750 million and was on the verge of becoming seventh unicorn from the edtech space. For the fiscal year ending in March 2023, Scaler’s revenue from operations increased 388% to Rs 317 crore from Rs 65 crore in FY22. The firm recorded a loss of 330 crore in FY23, a 90% surge from Rs 174 crore in FY22. Scaler competes with Newton School, Masai School, and to some extent with Simplilearn. As per data compiled by startup data intelligence platform TheKredible, Indian startup ecosystem saw more than 1,100 employees getting fired during the first quarter of 2024. Among them, foodtech company Swiggy topped the list with laying off 350 employees followed by Cult.fit, InMobi, and Pristyn Care with 150, 125 and 120 employees, respectively.

Scaler nears Rs 400 Cr revenue in FY24; losses down by 58%

EntrackrEntrackr · 5m ago
Scaler nears Rs 400 Cr revenue in FY24; losses down by 58%
Medial

Upskilling platform Scaler has showcased better financial results for the fiscal year ending March 2024. The Bengaluru-based firm achieved over 21% growth in its operating scale while reducing losses by 58% compared to the previous fiscal year (FY23). Scaler’s revenue from operations grew to Rs 384.5 crore in FY24, from Rs 316.7 crore in FY23, according to its consolidated financial statement filed with the Registrar of Companies (RoC). Scaler is a tech upskilling platform that focuses on honing college students and tech professionals’ skills. The company offers six-month computer science courses through live classes. Sales of these courses accounted for 99% of the firm’s operating revenue in FY24. The company made additional Rs 4.5 crore from interest income which pushed its total revenue to Rs 389 crore in FY24. Along with achieving decent growth in scale, the company has reduced costs across verticals, as evident from its expenditure on employee benefits, which declined by 28.57% to Rs 230 crore. Advertising costs dropped by 35% to Rs 92 crore, while IT expenses decreased by 31.82%. However, training and recruitment expenses rose by 44.12% to Rs 49 crore, and rent increased by 44.44% to Rs 13 crore in FY24. Overall, Scaler's total expenses declined by 22.2%, from Rs 609 crore in FY23 to Rs 474 crore during the last fiscal year. Optimization of major expense categories helped Scaler reduce its overall losses by 58% to Rs 139 crore in FY24. Its EBITDA Margin also improved to -32.02%. On a unit basis, the company spent Rs 1.23 to earn a rupee during the fiscal year. The company reported current assets worth Rs 83 crore including cash and bank balances worth Rs 20 crore in FY24. According to TheKredible, Scaler Academy has raised a total of $75 million of funding till date from Tiger Global and Peak XV among others. Its founders, Anshuman Singh and Abhimanyu Saxena, each hold 29.16% of the company. Peak XV Partners owns 22.61%, while Tiger Global holds an 8.13% stake in the company. While the financial numbers would indicate a runway for another six months in FY25, the firm will certainly need one more round of funding to stand independently. The business has scale, the brand has built some credibility now and a strong future beckons if Scaler can build on that momentum. The edtech does face its share of challenges, and will need to expand with care so as not to expend too many resources in markets where success may not necessarily follow. With its short term courses offering a career leg up, markets where the potential is high but the basic education system is a shambles will be a bad idea, one feels. As students simply may not be equipped to benefit as they should. We should know soon enough what route the firm takes to build a sustainable business.

Exclusive: Scaler to raise $40 Mn at reduced valuation

EntrackrEntrackr · 1m ago
Exclusive: Scaler to raise $40 Mn at reduced valuation
Medial

Exclusive: Scaler to raise $40 Mn at reduced valuation Upskilling platform Scaler is finalizing a $40 million fundraise, according to people familiar with the matter. This would be its first funding round in over three years, with the last one, a Series B, in February 2022. “Lighthouse is likely to lead a new funding round in Scaler, with some existing investors also participating. The deal is in its final stages and, barring any last-minute changes, is expected to close in a few weeks,” said a source requesting anonymity due to the private nature of the discussions. Scaler has so far raised over $75 million across rounds from the likes of Lightrock India, Peak XV Partners, and Tiger Global. The firm last raised $55 million in Series B in February 2022 at a valuation of $710 million. However, sources indicated that this will be a down round, with Scaler's valuation expected to plunge to $350–$370 million after the new funding. In response to Entrackr’s queries, Scaler said it does not comment on market speculation, while Peak XV declined to comment. Lighthouse had not responded by the time of publication. Scaler specializes in upskilling college students and technology professionals by offering an intensive six-month computer science program. The course is delivered through live classes led by experienced tech leaders and subject matter experts. While Scaler has yet to disclose its FY25 numbers, the company’s revenue from operations grew to Rs 384.5 crore in FY24 from Rs 316.7 crore in FY23. Optimization of major expense categories helped the company reduce its overall losses by 58% to Rs 139 crore in FY24. At the beginning of FY25, Scaler laid off around 150 employees citing long-term growth and sustainability. It competes with Newton School, Masai School, and to some extent with Simplilearn. Many growth and late-stage startups are operating in a challenging funding environment, raising capital at flat or reduced valuations.

BharatPe revenue climbs to Rs 1,426 Cr in FY24, losses shrink 50%

EntrackrEntrackr · 9m ago
BharatPe revenue climbs to Rs 1,426 Cr in FY24, losses shrink 50%
Medial

Fintech firm BharatPe has demonstrated remarkable growth over the past three fiscal years, with revenue increasing from Rs 119 crore in FY21 to Rs 1,426 crore in the fiscal year ending March 2024. In its consolidated annual report for FY24, BharatPe claimed a 39% year-on-year revenue increase, rising from Rs 1,029 crore in FY23 to Rs 1,426 crore in FY24. Additionally, the company made significant progress in reducing losses, with consolidated losses dropping by 50% to Rs 474 crore in FY24, down from Rs 941 crore in FY23. According to the press release, BharatPe’s average merchant lending portfolio, generated from loans facilitated through its platform, grew by 40% year-on-year in the last fiscal year. The company also achieved positive EBITDA in October of this year. “We considerably slashed our cash burn in FY24 and are on track to build a sustainable and profitable business. Over the last year, we have been able to partner with renowned financial institutions to extend credit access to merchants, which is a great validation for our business. Going forward, we will focus on growing our lending vertical, launching new offerings across POS, soundbox, and scaling our consumer vertical,” said Nalin Negi, CEO of BharatPe. In addition to reducing losses, BharatPe has diversified into new categories to drive business growth. Recently, the company rebranded its PostPe app to BharatPe, marking its entry into the consumer payments space. This strategic move places BharatPe in direct competition with industry giants like PhonePe, Google Pay, and Paytm in the peer-to-peer (P2P) payments ecosystem. The fintech unicorn has also ventured into secured lending for its merchant partners. Through partnerships with OTO Capital and Vol Money, BharatPe now facilitates two-wheeler loans and loans against mutual funds, respectively. Additionally, BharatPe has resolved its longstanding dispute with former co-founder and managing director Ashneer Grover.

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