Edtech company TalentSprint was acquired by NSE Academy, a wholly-owned subsidiary of the National Stock Exchange in November 2020. The Hyderabad-based firm has demonstrated a strong performance since the acquisition and reached the Rs 100 crore revenue mark during FY23.
TalentSprint’s revenue from operations surged 40.8% to Rs 100 crore in FY23 from Rs 71 crore in FY22, according to its financial statements filed with the Registrar of Companies.
TalentSprint offers certification programs in emerging and deep technologies to aspiring and experienced professionals using a hybrid online/onsite model. Coding bootcamps, AI and data sciences, fintech, blockchains, cyber security, and digital health are some of their recommended programs.
Income from skill training services is the sole source of revenue for TalentSprint – this also includes the sale of equipment-studio/classroom setup. The company also has an interest income of Rs 1.15 crore in the previous fiscal year.
On the expenditure side, advertisement, and business promotion was the largest cost center which formed 26.28% of the overall expenses. This cost grew 47.5% to Rs 27.6 crore in FY22.
NSE Academy (the holding entity) charged a significant 25% of TalentSprint’s income as royalty which increased 38% to R 25.4 crore. Its employee benefit and consultancy charges grew by 42.9% and 13.3% to Rs 24.3 crore and Rs 5.4 crore respectively which steered its overall expenditure by 41.9% to Rs 105 crore in FY23.
After all expenses including royalty and scholarships, losses for TalentSprint spiked to Rs 3.9 crore in FY23. Its ROCE and EBITDA margins stood at 73.83% and 3.68% during the previous fiscal year. The Nexus Venture-backed company spent Rs 1.05 to earn a single unit of operating revenue.
TalentSprint has a lot going for it. A strong parent firm, a menu of offerings that includes jobs, an enterprise focused approach, and a focus on deep tech in the financial sector that places it very well to build on its strengths mentioned earlier. We have maintained that edtechs focused on graduates and working executives also face a less daunting market, vis a vis K12 firms that gave much more competition. The high royalty being paid to NSE might seem like a drag , but is evidently worth it , when we consider the ready advantages it brings to the firm, for now . With some international ambitions evident, TalentSprint looks set for an extended period of organic growth without needing too much external capital, before it settles down to become a strong cash generator for its stakeholders.
