Online certification training course provider Simplilearn has set its sights on achieving full-year profitability in FY25, as stated by co-founder and chief operating officer, Kashyap Dalal.
“We’ve reached a significant milestone in our journey. In FY23, we generated ₹701 crores in revenue, reducing our losses to 29%,” Dalal stated. “By the fourth quarter of FY24, we turned EBITDA positive. This year, we aim to consolidate our profitable status and target a 30-40% growth momentum.”
Simplilearn’s business operations span the US, India, and EMEA regions, with the US market alone contributing 60% of its revenue. The company serves both individual professionals and large enterprises, offering a range of programs, including certifications, university partnerships, and boot camps.
Dalal said: “Our focus on areas like AI, generative AI, and cybersecurity has paid off, given the increasing global demand for digital skills. We have partnered with the likes of IIT Kanpur, IIIT- Bangalore, and NPCI to offer cybersecurity programs. We will continue to add more such programs in the future. AI, cybersecurity, and digital skills in general are really driving growth for us. That’s where most of the action is.”
The reduction in marketing expenditures was another key factor in Simplilearn’s improved financial health. Dalal attributed this to a significant shift in the competitive landscape. “The edtech market has also rationalised its marketing spends over the past year, with the exit of relatively larger players, we are now spending less to acquire customers. The exit of a large player like Byju’s from aggressive marketing reduced the overall competition in the market. This allowed us to optimize our marketing spends and allocate resources more efficiently,” Dalal added.
“Also there has been an internal rationalisation for us in terms of the areas that we want to focus on and build leadership in,” Dalal added.. However, Dalal also acknowledged the challenges and necessary strategic pivots. “We had to make tough decisions to scale back on less profitable ventures,” he said. “Our study abroad programs, certain high school categories, and K-12 businesses did not meet our profitability targets. These decisions were crucial in realigning our resources towards more lucrative segments,” he added.
“For instance, we exited the study abroad segment because it wasn’t generating the expected returns. We also felt the existing players were better positioned than us to capitalise on the segment.” The company also currently assessing its strategic acquisition options in the market. Something it will want to trigger, once it turns profitable over the course of the current fiscal,” Dalal added.
Simplilearn does not have any immediate plans to expand to offline, something that many large online-first edtech players have been doing recently.
“In our current focus which is professional skilling, we don’t see expanding to offline as mission critical. So I think for us, offline is not a priority at this point. We want to focus on the areas of professional skilling that we are strong in and double down on them. In terms of expanding to adjacent offerings, acquisitions seem a better route for us. That is our strategy,” Dalal added. “If we are profitable and doing things well, acquisition is our next natural step forward. We have already started exploring our options, and could expect to make a move in the next 6 months,” Dalal added.
The company also expects to add 10-15% in terms of employee headcount throughout the current fiscal. It currently has about 1600 employees, out of which about 80 to 100 are working out of the US.
