Eruditus clocks Rs 3,733 Cr revenue in FY24, narrows losses by 83%

Global edtech company Eruditus recorded modest year-on-year growth in its operating revenue, crossing the Rs 3,700 crore ($448 million) mark in the fiscal year ending June 2024. However, the Mumbai-based firm narrowed its losses by over 83% during the same period.

Compared to FY23, the firm’s operating scale grew by 12% to Rs 3,733 crore, according to a company statement. Eruditus follows a financial year that runs from July to June.

The firm appears to be ahead of the leading edtechs, with revenue nearly 1.8 times that of PhysicsWallah and more than double that of upGrad. PhysicsWallah reported Rs 2,015 crore revenue in FY24 whereas upGrad registered Rs 1,487 crore revenue in the same period.

Eruditus has a strong global footprint, offering education across more than 80 countries to over a million learners. It partners with over 80 universities across the United States, Europe, Latin America, Southeast Asia, India, and China. The firm didn’t offer revenue break-up across geographies.

The company also deferred recognition of Rs 800 crore ($96 million) in collected revenue to the last fiscal year (FY25).

Eruditus made progress in controlling its expenses as its marketing expenses dipped 18.85% year-on-year to Rs 1,007 crore in FY24 from Rs 1,241 crore in FY23. Other operating expenses were down by 32.16% year-on-year to Rs 1,045 crore in FY24 from Rs 1,541 crore in FY23.

The cost optimizations led to a sharp improvement in the company’s bottomline. Eruditus narrowed its adjusted EBITDA losses by 83.45% to Rs 69 crore ($8.3 million) in FY24 from Rs 417 crore ($50 million) in FY23.

With backing from investors such as TPG, the Chan Zuckerberg Initiative, SoftBank Vision Fund 2, Prosus Ventures, Accel, and Peak XV, Eruditus has the capital reserve to expand its presence and offerings across markets. In October 2024, it raised $150 million in the second-largest edtech deal of the year, after PhysicsWallah’s $210 million funding.

With revenue approaching $500 million and an 83% reduction in losses, the company shows a path toward sustainable growth in the edtech industry. Heading into FY25 with deferred revenue, Eruditus is on track to achieve profitability while building on its revenue base.

While no mean feat, what makes it even better is the fact that Eruditus is a truly global edtech from India with scale, opportunity and an increasingly stronger brand to boast of. We believe marketing costs, while very high, will continue to dip as the firm makes the investments into the brand sweat harder, and will probably spend more where it is entering newer segments. Good Education brands mature well with age, and Eruditus is well on its way.