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

Entrackr · 9d

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.