Vedantu Achieves Profitability In Q4 FY25: CEO Vamsi Krishna

SUMMARY

The founder and CEO of the company took his LinkedIn handle to share that the company turned profitable in Q4 FY25

As per Vedantu, it recorded a collection of INR 90 Cr in the quarter under review

The company became profitable with INR 6 Cr in Free Cash Flow (FCF)

Edtech startup Vedantu achieved profitability in the March quarter of the fiscal year 2024-25 (Q4 FY25), with collections surging 67% year-on-year (YoY) to INR 90 Cr, cofounder and CEO Vamsi Krishna said.

On the back of a strong Q4 performance, Vedantu also reported its “strongest year ever since its inception” in FY25, Krishna said in a LinkedIn post. The edtech company closed FY25 with INR 284 Cr in collections, marking a 55% increase from the previous fiscal year, while reducing its cash burn by 30% YoY to INR 70 Cr.

Krishna further said, “..this wasn’t even our peak quarter, which puts us on a clear trajectory for a cash flow positive FY26.”

In FY24, the company’s net loss declined 58% to INR 157.52 Cr from INR 372.64 Cr in FY23, on the back of growth in its top line and improvement in margins.

Founded by Krishna, Anand Prakash and Pulkit Jain in 2014, Vedantu offers online and offline courses for students in 4th class to 12th class. It also provides coaching for NEET and JEE entrance exams. Recently, it started offering curated courses for kids of 4 to 12 years of age.

Last year, the company raised INR 19.25 Cr ($2.4 Mn) in a mix of debt and equity financing from Stride Ventures Debt Fund II.

The company entered the unicorn club in 2021, after raising $100 Mn in its Series E funding round from Temasek-backed private equity firm ABC World Asia and participation from other investors.

The Edtech Reality Check

Apart from highlighting Vedantu’s FY25 results, Krishna also said that edtech is reviving and “thriving”.

“Offline has provided a boost, but online is thriving. In FY25, our online business alone grew 33% YoY. In the last 2 quarters, it surged to 70% YoY,” he said.

As per Inc42’s Annual Funding Report, 2024, Indian edtech startups raised more than $568 Mn in 2024, up from $283 Mn in 2023. While the number is far away from edtech’s peak in 2021, with the industry raising $4.6 Bn in funding and minting two unicorns, it is escalating on a year-on-year basis.

Besides, several big edtech startups including PhysicsWallah and Imarticus are eyeing their public listing in the near future.