Unlike many venture-funded edtech companies, Info Edge-backed Coding Ninjas has been growing at a decent pace and with sound unit economics – in FY22, it spent Rs 1.67 to make a rupee in operating income.
Coding Ninjas’ revenue from operations grew 55.3% to Rs 27.96 crore during the fiscal year ending March 2022 in contrast to Rs 18 crore in FY21, according to the company’s annual financial statements with the Registrar of Companies.
Coding Ninja also made Rs 95 lakh from interest on deposits and other non-operating activities during the year, taking the overall revenue to Rs 28.91 crore in the fiscal year ended March 2022.
Coding Ninjas provides computer language courses that are used to design applications, and software, among others. Its courses include coding in Java, Python, and C++ which helps students with competitive programming, interview preparation and data science.
Coding Ninjas spent heavily on IT infrastructure and promotions, which resulted in over 2X jump in losses. Its losses soared 106% to Rs 17 crore in FY22 from Rs 8.26 crore in FY21. It’s worth noting that the company was profitable in FY20.
Analysis of the expense pattern shows employee benefits was the largest cost which accounted for 55.3% of the total expenditures. This cost surged nearly 59% to Rs 25.8 crore in FY22 from Rs 16.25 crore in FY21.
Advertising & business-promotional expenses inclined 45% to Rs 9.82 crore during the year while IT costs (payment gateway, software usage, server & software maintenance) jumped around 3X to Rs 2.94 crore. Payments to influencers and tele counseling charges stood at Rs 2.86 crore and Rs 95 lakh during FY22.
At the end, its overall expenditure ballooned 62.3% to Rs 46.66 crore during FY22 as compared to Rs 28.75 crore in FY21.
Info Edge invested around $17 million in Coding Ninjas to increase its stake to 51% in October 2022. The company has received about $22 million funds from Info Edge to date which owns controlling stakes in Coding Ninjas. In the coding vertical, it competes with WhiteHat Jr, Toppr, Vedantu, Cuemath, Camp K12, and Uable.