Executive edtech platform Eruditus has said that it recorded a 70% surge in revenues to Rs 3,343 crore in FY23, from Rs 1,962 crore in FY22. The company also claims to have reduced its losses by two-thirds, down 66.1% to Rs 1,049 crore in FY23 from Rs 3,094 crore in FY22, according to its consolidated financial statements filed by the group entity in Singapore.
The company earned all its money from the fees charged on the online and classroom management education programs it offers in collaboration with business schools, and upskilling and training offered to the corporate workforce.
The Eruditus group has 10 subsidiaries across 7 countries, including the USA, China, India, Mexico, the UK, Singapore and the UAE. The US was the largest geographical market in terms of revenues, accounting for around 44% of its annual revenues followed by Asia and Asia Pacific countries. Latin America and Europe contributed 16% and 11%, respectively, to the total in FY23.
In terms of expenditure, the company spent Rs 4,392 crore for FY23, down from Rs 5,056 crore in FY22.
Eruditus’ program fees paid to schools remained its largest expense, consuming 31% of its total expenditure. This cost rose by 56.8% to Rs 1,356 crore in FY23. However, the company effectively managed other cost areas, with employee benefits and marketing expenses witnessing a decline of 53.1% and 12.7%, respectively.
The company’s ROCE stood at 25.6%, while its Ebitda margin was at 15.2%. Despite these gains, Eruditus still carries total outstanding losses of Rs 7,142 crore as of June 2023.
On a unit basis, Rs 1.31 was spent to earn every rupee in FY23. Though Byju’s hasn’t yet filed numbers for FY23, it remains the leading edtech company in terms of gross revenue. Eruditus reigns supreme in its niche segment, followed by upGrad with Rs 1,194 crore. Unacademy also joined the Rs 1,000-crore revenue club and significantly improved its bottom line. Other prominent players in the space include Byju’s-owned Great Learning, PhysicsWallah and Simplilearn.
Looking ahead, Eruditus plans to foray into the study abroad category, potentially setting up a direct clash with rivals like upGrad, Leverage Edu, Leap Scholar, CollegeDekho and AdmitKard. Additionally, reports suggest that the company might consider moving its domicile to India and eventually going public. However, Eruditus co-founder and CEO Ashwin Damera has dismissed any immediate plans for an IPO.