Extramarks plans to launch CUET preparation courses, eyes net revenue of Rs 1,000 crore in FY23 | The Financial Express

Extramarks plans to launch CUET preparation courses, eyes net revenue of Rs 1,000 crore in FY23

In FY21, the firm posted a net loss of Rs 104.89 crore, as opposed to a net profit of Rs 4.5 crore in FY20.

Extramarks plans to launch CUET preparation courses, eyes net revenue of Rs 1,000 crore in FY23
In FY21, the firm posted a net loss of Rs 104.89 crore, as opposed to a net profit of Rs 4.5 crore in FY20.

Ed-tech platform Extramarks plans to launch Common University Entrance Test (CUET) preparation courses in November, 2022, Ritvik Kulshrestha, CEO, Extramarks, told FE Education. Furthermore, the company aims to expand its presence in the United Arab Emirates (UAE) in FY23. “We had started our operations in UAE in 2021 with one office. This fiscal, we aim to expand our content and sales team,” he added. In FY23, the company aims to clock net revenue of Rs 1,000 crore. “We expect to break even by the end of FY23,” Kulshrestha said.

Regulatory files accessed by business intelligence platform Tofler revealed that the company’s revenue from operation declined 29.71% in FY21 to Rs 227.49 crore from Rs 323.69 crore in FY20. In FY21, the firm posted a net loss of Rs 104.89 crore, whereas, in FY20, Extramarks reported a net profit of Rs 4.5 crore. “In FY22, we had a monthly run rate of Rs 40 crore,”  Kulshrestha said. However, the firm declined to provide the financials of FY22. “We are  covering up for the loss that we had in January and February. By the end of this fiscal year, we will be breaking even,” Kulshrestha explained.

Furthermore, to explain CUET preparation courses, Kulshrestha added that as a business to consumer (B2C) product, the programme is designed for one year with a course fee of Rs 35,000. However, the duration of the course may change as per the needs of schools. “ For example, if a  school wants crash courses, teacher training or study materials, the duration and fee structure will be different,” he said.  Apart from that, the company claims to offer Joint Entrance Examination (JEE) and National Eligibility Entrance Test (NEET) courses at an average cost of Rs 25,000. Currently the firm claims to have collaborated with 15,000 schools. In FY23, the firm aims to collaborate with 10,000 more schools.

In February, 2022, Extramarks launched Teacher App, an application for teachers to upgrade. “The Teacher App is a free platform for teachers,” Kulshrestha said. The firm has started Extramarks Experiences, an interactive session for students by industry experts, in January 2022. Furthermore, the company aims to roll out fund-raise in FY23. “We have started to talk to investors, and aim to close it by December, 2022,” Kulshrestha noted.

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