Led by a nearly 361% increase in employee benefit expenses, Vedantu’s total expenses grew 4X to INR 736 Cr in FY21
The edtech unicorn also reported a steep increase in its ‘other expenses’ which also grew more than three-fold to INR 317 Cr in FY21
Vedantu’s total income surged 276% to INR 134.9 cr during FY21
Edtech unicorn Vedantu’s net loss grew more than 4X to INR 601.2 Cr during financial year 2020-21 (FY21) from INR 150.1 Cr in FY20 as its expenses soared.
Its revenue from operations grew 3.8X year-on-year (YoY) to INR 93.68 Cr in FY21, while total income surged 276% to INR 134.9 Cr from INR 35.9 Cr in the previous fiscal.
However, total expenses grew almost 4X to INR 736 Cr in FY21 from INR 185.9 Cr in FY20, led by a 361% increase in employee benefit expenses to INR 407.45 Cr
The startup also reported a steep increase in its ‘other expenses’ which grew more than three-fold to INR 317 Cr in FY21.
The disclosures were made by the startup in its regulatory filing with the Ministry of Corporate Affairs (MCA).
While the Covid-19 pandemic provided a boost to the edtech players, visible in the growth in Vedantu’s revenue, the competition also led to a rise in marketing costs and employee expenses.
Vedantu, founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, is a Bengaluru-based online interactive tutoring platform that caters to students across multiple categories.
The reported numbers also include the period during which Vedantu turned unicorn last year. In September 2021, the edtech startup raised $100 Mn led by Temasek-backed ABC World Asia, which valued it at just over $1 Bn.
Since then, the startup has been on a downward spiral. Amid a decline in edtech craze and whispers of funding winter, Vedantu laid off 624 employees in a matter of 15 days in May this year.
Despite this, Krishna earlier told Moneycontrol in April that the startup was looking to achieve a profit margin of 25% in the next 18 months. He also hinted that Vednatu was mulling an initial public offering (IPO).
With the reopening of schools, the edtech players are witnessing a slowdown in their business. Amid these, many edtech players have also entered the offline space. BYJU’s, Unacademy and PhysicsWallah have made their foray into offline space. Responding to this, Kota-based Allen Career Institute made its entry into the online space.
Edtech startups put up their best show last year, raising $4.7 Bn and minting three new unicorns. In stark contrast, the year 2022 has seen the edtech players laying off employees.
While Unacademy fired 1,150 employees, BYJU’s-owned WhiteHat Jr laid off 1,000 employees.
According to an Inc42 report, the edtech sector in the country is projected to reach a market size of $10.4 Bn by 2025.