Edtech company Vedantu has released its financial results for the fiscal year ending March 2023. The Bengaluru-based firm faced challenges in scaling, with its revenue dropping by 7.8% in FY23. However, the company managed to control its losses by 46% during the same period.
Vedantu’s revenue from operations decreased by 7.8% to Rs 153 crore in FY23 from Rs 166 crore in FY22, its consolidated financial statements accessed from the Registrar of Companies (RoC)show.
Income from online tutoring of various courses accounted for 94% of its total operating revenue which declined 13.3% to Rs 144 crore in FY23. The rest of the collections comes from the sale of books, hostel fees, and e-learning project income in FY23.
The company also made Rs 22 crore from interest and gain on financial assets tallying its total income to Rs 175 crore in FY23.
Similar to other large edtech startups, its employee benefits emerged as the largest cost center forming 56.7% of the total expenditure which declined by 35.8% to Rs 314 crore in FY23.
The firm’s spending on legal, advertising cum promotional, training, information technology, and overheads pushed its overall expenditure to Rs 553 crore in FY23 from Rs 888 crore in FY22.
See TheKredible for the detailed expense breakup.
Expense Breakdown
https://thekredible.com/company/vedantu/financials
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https://thekredible.com/company/vedantu/financials
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- Employee benefits
- Information technology
- Advertisment & promotions
- Others
Despite the decline in scale, the Tiger Global-backed company managed to control its advertising and employee benefits which led Vedantu’s losses to decrease by 46.4% to Rs 373 crore in FY23 from Rs 696 crore in FY22. Its ROCE and EBITDA margins stood at -68% and -198.9% respectively. On a unit level, it spent Rs 3.61 to earn a rupee in FY23.
FY23-FY24
| FY22 | FY23 |
| EBITDA Margin | -356.97% | -199.30% |
| Expense/₹ of Op Revenue | ₹5.35 | ₹3.62 |
| ROCE | -118.31% | -68.44% |
As of March 2023, the company had a net current asset of Rs 299 crore including cash and bank balances of Rs 39 crore. As per Fintrackr’s estimates, its enterprise value to revenue multiple stood at 50X.
Vedantu has not been able to raise a new round since its last equity funding in September 2021. The company also turned unicorn in the $100 million Series E round. In 2022, the company faced back to back firings and laid off more than 1,000 employees across three-four phases.
The company also took over Deeksha, Pedagogy and Instasolv in the 2021-22 period. For Deeksha’s acquisition, it spent around $40 million. In December, Vedantu announced its expansion plan to open more than 30 offline centers for JEE, and NEET in multiple cities across the country.
Among the edtech unicorns, Byju’s remains the top edtech as of FY22 with Rs 5,015 crore revenue but it’s yet to report FY23 numbers. Eruditus and upGrad reported Rs 3,343 crore and Rs 1,194 core revenue in FY23 respectively. Unacademy also entered into the Rs 1,000 crore revenue club in FY23 and improved its bottom line significantly.
