How Primebook Raked In INR 50 Cr Revenue In FY24 By Selling Affordable Laptops For Learners

There was much euphoria when smart classrooms made a foray into India two decades ago. For this was the first time in the country’s history, millions of K-12 students from every social stratum could access a modernised method of learning through smart boards, instead of chalkboards. 

Fast forward to the Covid-19 pandemic, lockdowns compelled 298 Mn school students to miss their classes for nearly 82 weeks, according to UNESCO data. But despite digital advancements, screens were not everywhere to help students learn online. Only 17% had access to laptops, 4% used tablets and 79% used smartphones as their primary learning device, according to a report by VidyaSaarathi, a scholarship management portal promoted by the NSDL e-Governance.

Chitranshu Mahant and Aman Verma, roommates at IIT-Delhi while doing their engineering, used to volunteer for the National Social Scheme (NSS) and teach underprivileged students. Even before the Covid-19 outbreak, they were aware of the potential of e-learning and how the country’s digital divide could increase the number of school dropouts.

Recognising the potential of computing devices for education, the duo founded Primebook in 2018 to develop the right technology for digital learning. They launched PrimeOS, an Android OS for PCs, to make a laptop that efficiently serves students’ needs. Since India’s online education system is ‘Android-first’, an Android-based OS was essential for building a laptop that provides access to all Android apps.

The copyrighted OS was initially deployed to edtech platforms trying to collect feedback on its functionality, especially during the pandemic. After extensive research and discussions with students and teachers, they identified that students need laptop productivity, value for money, android apps and internet connectivity to enhance their digital learning experience.

So they launched Primebook as a made-in-India, cost-effective laptop brand suitable for students and learners for all ages and light users of laptops. The duo zeroed in on a super-portable laptop ideal for hours-long learning, doing assignments and writing online tests; a spacious keypad and trackpad — all built on top of the startup’s proprietary PrimeOS. 

This combination lets users access regular Android apps via the laptop and run multiple apps simultaneously like a regular computer. It also features a built-in 4G SIM slot for users to stay connected using their existing mobile data plans. Additionally, there is a built-in app store to download and manage Android apps, much like the Google Play Store. 

The brand currently offers four models with varying specifications, priced between INR 11,000 and INR 16,990. It also offers a mobile device management (MDM) solution that enhances parental control, empowering children with a safe browsing experience.

Between June 2023 and June 2024, Primebook’s Mahant said that it sold more than 35K laptops through its website and major online marketplaces like Amazon and Flipkart. It has also partnered with prominent NGOs and edtech platforms to distribute Primebooks among economically vulnerable students.

Primebook raised INR 8.5 Cr in equity and INR 8 Cr in debt from a clutch of investors, including INR 75 Lakh from Shark Tank India (Season 2), among other fundraising initiatives. The exposure boosted its brand visibility and led to a surge in sales. 

“By December 2023, we captured a 3% market share in the under-$250 category with an average customer rating of 4.3 out of 5 based on 10K+ reviews on ecommerce marketplaces,” said Mahant.

The startup claims to have turned profitable in FY24, with a 10x YoY revenue growth at INR 50 Cr. It aims to triple its revenue to INR 150 Cr in the current financial year, launch upgraded models with larger screens and expand to the African and Southeast Asian markets in the next two to three years.

How Primebook Countered Challenges Galore To Make In India, For India

India’s experimentation with premium yet affordable personal hardware is far from over, although the country has spent a considerable amount on R&D, inspired by the MIT-powered OLPC (one laptop per child) programme. 

But when buying laptops, however inexpensive, average Indian consumers still trust established brands like HP, Lenovo or Dell, which have secured a firm foothold in the ‘affordable’ segment. In fact, a 2023 survey on laptop ownership in India revealed that 33.2% of users owned HP devices, followed by Dell (23.1%) and Lenovo (14.7%).

Aware of the customer bias, the founders have gone beyond pricing and pushed a utility-rich, smoothly functioning PC interface running on PrimeOS that grants access to the vast Android library, which houses more than 50K+ apps.  

“Online education in our country thrives on Android apps, and the content is primarily perused on handhelds [smartphones, phablets, and tablets]. However, laptops offer a superior learning experience due to improved UI. Therefore, we ensure seamless compatibility between all existing Android apps and a user-friendly laptop interface,” explained Mahant.

Its R&D team focusses on two major areas — hardware innovation to ensure better performance, longer durability and greater energy efficiency, and improving PrimeOS to optimise it for a smooth learning experience. The startup has already implemented diagnostic tools and QC benchmarking software for constant evaluation and upgrade.

Primebook has partnered with three manufacturing experts in Delhi NCR, Manesar (Haryana) and Pollachi (Tamil Nadu) to build devices that are ready to be connected and played.

The startup has also incorporated the latest Google AOSP security patches – updates released by the tech giant to fix vulnerabilities in the Android Open Source Project, essentially the foundation of the Android OS. It also ensures stringent student safety via MDM and parental controls.   

On the brand-building front, as a new kid on the block, Primebook also struggled with the visibility factor until it appeared on Shark Tank, narrating its entrepreneurial journey and bagging funds from Aman Gupta of boAT. 

“Our appearance there was a major milestone in our brand-building journey. Since then, we have seen a 100x increase in business growth, including sales, brand awareness and business partnerships,” said Mahant.

Primebook raised funding as early as 2018 (its launch year) from Venture Catalysts++, India’s first multi-stage venture capital firm. Mahant said the capital was crucial for Primebook, as it helped weather the financial challenges during the pandemic. VCats++ also provided extensive networking opportunities, enabling the hardware startup to connect with edtech platforms and grow its business. In addition, the VC firm took part in Primebook’s recent bridge round in August 2023.

Is Primebook’s Success Story A One-Off Narrative?

True to its vision of bridging the digital divide, 50% of Primebook’s revenue currently rolls in from Tier II (35%) and III (15%) locations. Interestingly, Patna, the capital of Bihar but still a Tier II city, is No. 2 on its sales list. Meanwhile, New Delhi tops that list. 

“Our mission is to deliver the right technology to students and learners worldwide, ensuring no one is left behind in the digital education race,” said Mahant. “We are also developing an AI layer for PrimeOS to provide adaptive learning tools, personalised recommendations and intelligent tutoring.”

Globally, the educational PC market (laptops, desktops and tablets) is estimated to reach $44.2 Bn by 2032, growing at a CAGR of 10.8% from $17.6 Bn in 2023. Although schools are no longer operating virtually, the demand for laptops is projected to go up in India, with the revenue forecast indicating $12.8 Bn by 2028, up from $7.6 Bn in 2021, a CAGR of 7.7% for the estimated period.

A host of homegrown players such as Primebook, JioBook and AXL, can leverage this market growth if they can improve specification limits and enhance performance in spite of the price constraints. For instance, the Primebook 4G, priced at around INR 15K, has limited RAM (4 GB) and cannot handle complex multi-tasking beyond routine browsing, document editing and media consumption. 

However, domestic brands enjoy a distinct advantage: They have a thorough understanding of the country’s education market and students’ requirements. For them, growth hinges on finding the convergence of affordability, functionality and advanced tech (not necessarily expensive, given the rise of standard tech stacks) to keep the e-learning ecosystem running smoothly. 

Screens are everywhere nowadays. But the buck may stop with Primebook and its ilk if digital devices have to help students and the youth learn in this tech-first era.

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