Vedantu, the Edtech Unicorn, Reports a Loss of Rs 157 Crore in FY24
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New Delhi, Dec 20 (NationPress) The Edtech unicorn Vedantu has reported a significant loss of Rs 157 crore in FY24, in contrast to a loss of Rs 373 crore in the previous fiscal year FY23.
According to its financial statements, Vedantu's overall expenditure in FY24 saw a reduction of 33.5 per cent year-on-year, dropping to Rs 368 crore from Rs 553 crore in FY23.
The largest component of the company's expenses was attributed to employee benefits, which constituted 47 per cent of total costs in the last financial year. In FY24, this figure fell by 43.8 per cent to Rs 176 crore, primarily due to workforce layoffs.
Additionally, Vedantu's spending on advertising plummeted by 70 per cent, decreasing from Rs 76 crore in FY23 to Rs 23 crore in FY24.
Other expenses incurred by the company included outsourcing of teachers, internships, book purchases, legal fees, and miscellaneous costs.
Vedantu's operational revenue in FY24 increased by approximately 20 per cent year-on-year, reaching Rs 185 crore, compared to Rs 153 crore in FY23.
When factoring in additional income of Rs 14 crore in FY24, Vedantu's total income for the fiscal year amounted to Rs 199 crore, compared to Rs 175 crore in the previous year.
As a result of the losses incurred in FY24, Vedantu's ROCE and EBITDA margins were reported at (-) 37 per cent and (-) 51.8 per cent, respectively. The startup spent Rs 1.99 to earn every Rs 1 in revenue during this period.
The company's total assets at the end of the last fiscal stood at Rs 174 crore, which includes a cash and bank balance of Rs 54 crore.
Vedantu offers online classes targeting students from class 6 to 12. It also provides educational materials for class 1 to 12 and coaching for JEE preparations. In recent years, the company has also established several offline coaching centers.
Reports indicate that Vedantu has encountered challenges in acquiring external funding over the past few years. The company successfully raised Rs 19.25 crore (approximately $2.3 million) through a combination of debt and equity from Stride Ventures in September 2024, marking its first investment in three years.
To date, Vedantu has accumulated over $300 million from notable investors including Tiger Global, Coatue, GGV Capital, and Westbridge.
