SchooGlink, which claims to provide affordable and quality education in tier 2 and 3 cities, looks to raise Rs 40 crore in its Series-A round, Himanshu Agrawal, co-founder told FE Education Online, adding that the company plans to use the investment to expand its SchooGlink Grassroot Centres across Rajasthan, Maharashtra, Gujarat and West Bengal. “In the next five years we plan to launch 5,000 centres across India and cater to the test-prep category,” he added. Presently, the company claims to have 25 grassroot centres in Bihar, Uttar Pradesh, Madhya Pradesh and Jharkhand.
The SchooGlink Grassroot Centres are the primary source of revenue for the company and the classes are priced between Rs 300-500, Agrawal claimed. “These centres consist of 40 students in each class and conduct six batches in a day,” the co-founder added. The company further claimed to have two other sources of revenue generation which includes a vernacular app – Pathyacharya mobile application (app) and SchooGlink Schools. The app is based on a freemium model wherein it offers free services for the first 21 days, post which learners are required to pay Rs 99 per month. While SchooGlink schools partner with different district administration to train teachers in the school premises. For SchooGlink schools, the company charges Rs two lakh for their set-up and Rs one lakh annual subscription fee, the company claimed.
According to Agrawal, the company aims to clock net revenue of Rs 1.5 crore in FY23 on the back of net loss worth Rs 1.5 crore. The company further claims to have closed FY22 with net revenue of Rs 20 lakh on the back of net loss Rs 4.8 crore. The company was in operation for just five months in the last fiscal. Meanwhile, as per regulatory files accessed by business intelligence firm Tofler, SchooGlink reported 26.8% decrease in the net revenue to Rs 79.7 lakh in FY21 from Rs 1.09 crore in FY20. It posted a 37% decline in net loss to Rs 80 lakh in FY22 from Rs 1.27 crore in FY21.
Furthermore, Agrawal elaborated that SchooGlink uses regional languages to teach seven to 12 grade students. “We teach all subjects to students between seven to 10 grade and physics, chemistry, mathematics to grade 11 and 12,” he said. Further, the company plans to recruit teachers from the humanities stream and expand the number of classrooms at the centres to accommodate more students.