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Vedantu income nears Rs 200 Cr in FY24; losses cut by 58%

Entrackr · 1d

After a slight decline in operating scale in FY23, edtech unicorn Vedantu reported a 21% year-on-year revenue growth for the fiscal year ending March 2024. Significantly, the Bengaluru-based company reduced its losses by 58% during the same period. Vedantu's revenue from operations grew to Rs 185 crore in the last fiscal year from Rs 153 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. Vedantu's core offerings include online classes for grades 6 to 12, along with study materials for grades 1 to 12 and JEE preparation. In May 2020, the company expanded into the kids' coding space for ages 6-12 and has also launched several offline coaching centers in recent years. Income from online tutoring accounted for 90% of Vedantu's total operating revenue, increasing 11.4% to Rs 166 crore in FY24 from Rs 149 crore in FY23. Book sales tripled to Rs 9 crore, while the remaining revenue came from hostel fees and e-learning project income in FY24. Vedantu also added Rs 14 crore, primarily from non-operating income such as interest on deposits, increasing its overall revenue to Rs 199 crore in FY24, as compared to Rs 175 crore in FY23. Similar to other edtech firms, employee benefits were the largest cost component, which accounted for 47% of Vedantu's total expenditure. However, following significant layoffs in FY24, these costs dropped by 43.8% to Rs 176 crore in FY24. Vedantu's advertisement cum promotional spend was also reduced by 70% to Rs 23 crore in FY24. Expenses for outsourcing teachers, internships, book procurement, legal services, and other overheads brought the firm's total expenditure to Rs 368 crore, marking a 33.5% decline compared to FY23. The significant reduction in employee benefits and advertising along with 20% growth in scale led Vedantu's losses to be reduced by 58% to Rs 157 crore in FY24. Its ROCE, and EBIDDA margins improved to -37% and -51.8%, respectively. Its expense-to-earning ratio stood at Rs 1.99 in the said fiscal. During FY24, Vedantu's current assets recorded at 174 crore with cash and bank balances of Rs 54 crore. Vedantu has struggled to secure substantial external funding in recent years. In September, the firm raised Rs 19.25 crore (approximately $2.3 million) through a mix of debt and equity from Stride Ventures, marking its first investment in over three years. To date, Vedantu has raised over $300 million from major investors, including Tiger Global, Coatue, GGV Capital, and Westbridge. While edtech funding has declined significantly compared to its peak, 2024 shows signs of recovery. According to startup data intelligence platform TheKredible, edtech firms have raised $613 million across 37 deals so far this year, surpassing the $456 million raised in 2023. However, this is still a steep drop from the $2.3 billion raised in 2022 and $5.8 billion in 2021.