Vedantu’s operating revenue stood at INR 152.5 Cr in FY23, down 8% from INR 166 Cr in the previous year
The startup’s primary source of revenue was the tuition fees for its online courses, which declined 13% to INR 144.3 Cr from INR 166 Cr in FY22
The primary reason for the drop in Vedantu’s loss was the decline in its expenditure, which fell 38% to INR 553 Cr in FY23
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Bengaluru-based K-12 edtech startup Vedantu managed to narrow its consolidated net loss in the financial year ended March 31, 2023. The Vamsi Krishna-led startup’s loss declined 46% to INR 372.6 Cr in the financial year 2022-23 (FY23) from INR 696.2 Cr in the previous fiscal year.
However, Vedantu also saw a decline in its revenue from operations during the year under review. Its operating revenue stood at INR 152.5 Cr in FY23, down 8% from INR 166 Cr in the previous year.
The startup’s primary source of revenue was the tuition fees for its online courses, which declined 13% to INR 144.3 Cr during the year under review from INR 166 Cr in FY22.
Including other income, total revenue declined 9% to INR 174.7 Cr in FY23 from INR 191.8 Cr in the previous year.
Founded in 2014 by Krishna, Anand Prakash, and Pulkit Jain, Vedantu is an edtech startup which offers courses through online and offline medium. The startup offers tuition to school students and also courses for NEET and JEE entrance exams. Recently, it also started offering curated courses for kids 4 to 12 years of age.
Where Did Vedantu Spend?
The primary reason for the drop in Vedantu’s loss was the decline in its expenditure. In FY23, the startup’s total expenses fell 38% to INR 553 Cr from INR 888 Cr in the previous fiscal year.
Employee Benefit Expenses: The edtech startup startup’s biggest expenditure was its employee cost. It spent INR 313.5 Cr on employee cost during the year under review, a decline of 36% from INR 489.2 Cr in FY22.
It needs to be highlighted that Vednatu undertook multiple rounds of layoffs in 2022. As per Inc42’s layoff tracker, the startup fired around 1,000 employees in 2022.
Advertising Expenses: Marketing expenses plummeted 58% to INR 76 Cr from INR 182 Cr in FY22.
The Temasek-backed edtech startup acquired a majority stake in Karnataka-based test preparation platform Deeksha for around $40 Mn in 2022 to strengthen its offline presence. Last year, Vedantu also said that it was looking to further strengthen its offline presence by launching 30 more offline centres for JEE and NEET preparations across the country.
The startup has raised around $300 Mn in multiple funding rounds till date. It entered the coveted unicorn club in September 2021 after raising $100 Mn in Series E round from Temasek-backed private equity firm ABC World Asia, with participation from existing investors Coatue Management, Tiger Global, GGV Capital, and WestBridge.
In the K-12 space, Vendantu competes against the likes of BYJU’S, PhysicsWallah, and Unacademy.
It is pertinent to note that most of the Indian edtech startups continue to post losses. While Unacademy posted a loss of INR 1,687 Cr in FY23, troubled BYJU’S is yet to release its numbers for FY23. PhysicsWallah continued to remain a profit-making entity, but its profit tanked 91% to INR 9 Cr in FY23.
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