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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.

Chingari crosses Rs 100 Cr revenue in FY23; losses decline 70%

EntrackrEntrackr · 1y ago
Chingari crosses Rs 100 Cr revenue in FY23; losses decline 70%
Medial

Short-video-making app Chingari made a pivot to become a paid but private live streaming app which connects users and creators in the beginning of the ongoing fiscal year. While the impact of the pivot on its top and bottom lines will be evaluated when it reports FY24 numbers, the company’s revenue soared over two-fold in FY23. Chingari’s revenue from operations spiked 2.3X to Rs 113 crore in the fiscal year ending March 2023, its annual financial statement sourced from the Registrar of Companies (RoC) shows. Significantly, the company’s losses nosedived 70% during the last fiscal year. Founded in November 2018, Chingari used to be a TikTok clone until FY23 where it allowed users to create and post short-videos. The sale of services was the only source of revenue for Chingari in the last fiscal. In August 2022, Chingari launched its crypto token called $GARI and was set to make a debut on six global exchange platforms – FTX, Huobi, Kucoin, OKEX, Gate.IO, MEXC Global. The firm also roped in Bollywood actor Salman Khan to launch the NFT marketplace and reward platform. Caveat: Chingari didn’t provide revenue break-up for FY23 but it looks like most of its collection came via advertising and crypto activities. Moving to the cost side, application development formed 32% of the overall expenditure which increased by 16.3% to Rs 50 crore in FY23. Chingari’s employee benefits cost surged 3.8X to Rs 46 crore in FY23. It’s worth noting that Chingari fired around 60% of its employees in the current calendar year and is only left with 50-60 people in the team as per media reports. Chingari’s advertising cum promotional cost declined significantly to Rs 29 crore in FY23 from Rs 113 crore in FY22. The legal professional, subscription membership, rent, traveling, and other expenditures took the company’s overall cost to Rs 156 crore in the previous fiscal year. The decent scale and effective control on advertising helped Chingari to reduce its losses by 70% to Rs 42 crore in FY23 from Rs 139 crore in FY22. Meanwhile, its EBITDA margin improved to -36.3%. On a unit level, the Mumbai-based firm spent Rs 1.38 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -284% -36.3% Expense/Rupee of ops revenue ₹3.86 ₹1.38 ROCE -376% N/A Chingari has raised a total of Rs 360 crore across rounds while its total outstanding losses stood at Rs 223 crore until March 2023. Importantly, it had a total current assets of only Rs 24 crore at the end of FY23. Between short videos and crypto, it’s a tough call to pick the least promising option in hand for Chingari. While FY24 figures will reflect the impact of the Crypto winter, even as FY23 probably derived some momentum from there, it certainly makes one pessimistic about the story for FY24. On the cost front, one beauty of the Crypto business (the only one, some would argue ), is that the business no longer counts on high sales and marketing costs. In many cases, the model has moved to a revenue share with its beneficiaries , a slightly evolved version of multi level marketing schemes in fact. That might have explain the lower costs as well for FY23. Now that the firm has moved to a desi version of OnlyFans, it is anyone’s guess what kind of insights it will offer about India ‘s online audiences in due course. We are betting not many would be waiting with baited breath.

BillDesk’s growth slows in FY24; PAT drops to Rs 121 Cr

EntrackrEntrackr · 2m ago
BillDesk’s growth slows in FY24; PAT drops to Rs 121 Cr
Medial

BillDesk’s revenue from operations decreased to Rs 2,334 crore during the fiscal year ending March 2024 from Rs 2678 crore in FY23, as per the company’s consolidated financial statements with the Registrar of Companies. BillDesk makes money by charging fees for processing and settling electronic transactions, which contributed over 70% of its total operating revenue of Rs 1,591 crore in FY24. Around 16% of its earnings came from managing loyalty programs for clients, while the remainder was generated through the sale of products such as PINS and e-top-up subscriptions, along with other operating activities. Billdesk earned Rs 112 crore in non-operating income from interest and gains on financial assets. Its total revenue stood at Rs 2,446 crore in FY24, down from Rs 2,765 crore in FY23. For the payment company, bank fees and services had been the largest cost center, accounting for 78.8% of the overall expenditure. In line with the drop in scale, this cost declined by 16% to Rs 1,804 crore in FY24. Despite the reduced scale, employee benefit expenses rose by 22.4% to Rs 300 crore. Spending on data, communication, legal, and information technology pushed the company’s total expenses to Rs 2,289 crore during the fiscal year. The decline in scale, coupled with higher employee expenses, led BillDesk to report a 14.8% drop in profit to Rs 121 crore in FY24 from Rs 142 crore in FY23. Its Return on Capital Employed (ROCE) and EBITDA margins also dipped slightly, settling at 5.77% and 9.24%, respectively. On a per-unit basis, the company spent Rs 0.98 to earn every rupee during the year. By the end of FY24, BillDesk's total current assets stood at Rs 2,612 crore, which included Rs 930 crore in cash and bank balances.

ShareChat adds fresh ESOPs worth $123 Mn

EntrackrEntrackr · 1y ago
ShareChat adds fresh ESOPs worth $123 Mn
Medial

Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has added fresh employee stock option (ESOP) options for its employees under its existing ESOP plans. The development occurred shortly after the announcement of raising $49 million in debt from existing investors. The board at ShareChat has approved a special resolution to add 260,000 employee stock options to its existing plan, bringing the total ESOP pool to 846,300 options, its regulatory filing accessed through the Registrar of Companies (RoC) shows. Importantly, every 100 stock options will be converted into one (1) equity share at a later date decided in the agreement. The objective of expanding the ESOP pool is to promote employee ownership as well as to attract, retain, and motivate talents. As per Fintrackr’s estimates, the newly added ESOPs are worth Rs 1,017 crore or $123 million while the value of the total ESOP pool stood at Rs 3,310 crore or $400 million. According to startup data intelligence platform TheKredible, ShareChat has raised around $1.8 billion from investors including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others. Despite mopping up close to $2 billion, the company wasn’t able to show substantial revenue as of FY23. Struggle in monetization led to a steep fall in valuation which stood at less than $2 billion in the recent bridge round. The firm was valued at $5 billion during its last fundraise in June 2022. During the last fundraise, it also announced to double the ESOP ownership for all of its current employees. During FY23, ShareChat had to spend nearly Rs 4,000 crore to earn Rs 533 crore in revenue. On a unit level, the firm spent Rs 7.16 to earn a rupee of operating revenue in the last reported fiscal. This was one of the highest expense-to-revenue ratios for a unicorn in FY23.

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