Skillmatics slips into losses in FY25; revenue up by 39%

Direct to consumer (D2C) educational product brand Skillmatics has managed to grow its operating scale by 39% during the fiscal year ending March 2025. However, the Mumbai-based firm slipped into losses due to higher employee costs in the same period.

Skillmatics’ operating revenue grew 39% to Rs 103 crore in FY25 from Rs 74 crore in FY24, according to its financial statement filed with the Registrar of Companies (RoC).

Founded in 2016, Skillmatics develops educational products and games for children aged under 10. Sale of these educational products accounted for 89% of the operating revenue. Including non-operating income of Rs 8.6 crore, its total income stood at Rs 111.6 crore during the year.

Geographically, India accounted for 62% of the product sale which increased by 87% to Rs 58 crore in FY25. The remaining 38% of the product sale came from outside India which decreased by 16% to Rs 36 crore in FY25.

The company’s expenses rose by 39% to Rs 114 crore in FY25 from Rs 82 crore in FY24. The largest cost component was cost of materials, which formed 44% of the total spend, growing 22% to Rs 50 crore in FY25 from Rs 41 crore in FY24. Employee benefits saw a 41% rise to Rs 24 crore, while advertisement charges doubled to Rs 18 crore.

Other notable expenses included packing, storage & transportation (Rs 8 crore), product listing fees (Rs 3 crore), and other overheads (Rs 11 crore). For a more detailed expense breakdown, refer to TheKredible.

The spike in expenses pushed Skillmatics into losses, with the company posting a net loss of Rs 2.5 crore in FY25 as against a profit of Rs 40 lakh in FY24. Its ROCE and EBITDA margin stood at -5.66% and -10.10%, respectively.

On a unit level, Skillmatics spent Rs 1.11 to earn a rupee of operating revenue, a ratio that remained unchanged from the previous fiscal year. At the same time, cash and bank balances stood at Rs 45 crore, while current assets were valued at Rs 107 crore in FY25.

According to TheKredible, Skillmatics has raised around $24 million of funding till date, having Peak XV Partners and Sofina as its lead investors. The company’s co-founders Dhvanil Sheth and Devanshi Kejriwal own 44% of the company.