Edtech Startup Teachmint Spent INR 187 To Earn Every INR 1 In FY22

SUMMARY

Teachmint’s net loss surged 24X to INR 131.7 Cr in FY22 from INR 5.5 Cr in FY21

FY22 was the first year when Teachmint earned operating revenue, garnering INR 77.45 Lakh from its operations

Employee benefits expense rose 45X YoY to INR 73.1 Cr in FY22

Edtech startup Teachmint reported a 24X surge in its net loss to INR 131.70 Cr in the financial year 2021-22 (FY22) from INR 5.52 Cr in FY21 on the back of a sharp rise in its expenses.

Incidentally, FY22 was the first year when Teachmint posted operating revenue since it was founded in 2020. Its revenue from operations stood at INR 77.45 Lakh in the year ended March 31, 2022.

However, Teachmint also reported a significant non-operating income from interest on fixed deposits and current investments, among others. Overall, the edtech startup’s total income grew to INR 12.67 Cr from INR 38.59 Lakh in FY21.

Meanwhile, total expenses ballooned 25X to INR 144.95 Cr from INR 5.90 Cr in FY21.

Employee benefit expenses rose 45X to INR 73.1 Cr in FY22 from INR 1.63 Cr in the previous year and accounted for the biggest chunk of total expenses.

Advertising expenses also grew 14X to INR 36.76 Cr from INR 2.66 Cr in FY21. Teachmint also spent about INR 17 Cr on subscriptions and membership fees, while it ended up paying nearly INR 5 Cr in legal fees during the year.

In terms of unit economics, the startup spent INR 187 to earn every INR 1 from operating revenue in FY22.

Founded in 2020 by Mihir Gupta, Payoj Jain, Divyansh Bordia and Anshuman Kumar, Teachmint is an online, video-first teaching platform that helps teachers digitise their classrooms. It is backed by the likes of Lightspeed India, Rocketship.vc, Goodwater Capital and Better Capital.

The startup allows teachers to conduct live classes, record and store lectures, create course structure, automate performance evaluations, maintain administrative workflow and collect fees.

Teachmint fired 45 employees, or 5% of its workforce, in November last year in a restructuring exercise.

The edtech startup last raised funds in October 2021, when it secured $78 Mn in its Series B round of funding. It has raised $118 Mn in funding to date.

Last week, it launched TeachPay, a fintech solution for education which offers schools an efficient method to regulate their fee collection. TeachPay can collect and settle the fees in different bank accounts with auto split and can use new-age payment modes such as QR codes and UPI to collect ancillary fees.