Cuemath’s revenue shrinks in FY23, losses go up

While most of the edtech companies managed to grow their scale in the previous fiscal year, Google-backed Cuemath has witnessed a dip in its scale along with reduction in its collection from teaching services and franchise biz.

Cuemath’s revenue from operations declined 18.6% to Rs 120.5 crore in FY23 from Rs 148.1 crore in FY22, according to its annual financial statements filed with the Registrar of Companies.

Financial FY23


Operating Revenue

Total Expense

Profit / Loss

Amount in ₹ Cr

The Bengaluru-based company provides Math classes for the K-12 segment and helps students prepare for school and competitive tests. Naturally, income from teaching services accounted for 98.9% of its total operating revenue. 

Cuemath’s franchise income shrank 90% during the previous fiscal year. Unlike in the past, the company hasn’t focused much on the franchise model in the past couple of years where it let teachers run Cuemath branded centers for Maths and Science. See TheKredible for the detailed revenue breakup.

Employee benefit was the largest cost center for Cuemath which formed 48% of its total burn. This cost surged 38.2% to Rs 173 crore in FY23 from Rs 126 crore in FY22. The firm’s legal-professional, advertising cum promotion, rental, and other operations costs steered its total expenditure to Rs 360 crore in FY23 from Rs 370 crore in FY22. 

Head to TheKredible to see the detailed expense breakup.

Expense Breakdown

Total ₹ 370 Cr
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Total ₹ 360 Cr
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  • Employee benefit expense
  • Legal Professional Charges
  • Advertising promotional expenses
  • Rent
  • Others

The company’s losses increased by 8.3% to Rs 235 crore in FY23 where the figures stood at Rs 217 crore in FY22. Its ROCE and EBITDA margin worsened to -121.8% and -183.9%. On a unit level, it spent Rs 2.99 to earn a rupee of operating revenue in FY23.


FY22 FY23
EBITDA Margin -143.78% -187.80%
Expense/₹ of Op Revenue ₹2.50 ₹2.99
Roce - -123.91%

At the end of FY23, Cuemath had current assets of Rs 315 crore which includes current investments of Rs 256 crore and cash and bank balances of Rs 25 crore.

As of now, Cuemath has raised around $126 million across several rounds and was last valued at around $400 million during its last equity fundraise. In the ongoing calendar year, the firm also fired 200 employees in two phases citing a restructuring exercise. Meanwhile, Cuemath roped in its former CEO Manan Khurma to take over the role of chief executive while the then CEO Vivek Sundar retained his position of co-founder in the company.

According to the startup data intelligence platform TheKredible, Peak XV Partners is the largest stakeholder in the company with 19.27% followed by Google, Alpha Wave, and Lightrock. Check TheKredible for complete captable.

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