Vedantu said it has witnessed majority adoption from outside the top 10 cities with 60 per cent of students from these markets.
Online live tutoring platform Vedantu on Friday said it expects its revenue run rate to more than double to USD 200 million and hit profitability by June next year. Vedantu, which competes with players like Byju’s, has seen month-on-month revenue growth of 50 per cent in April and May this year. Its revenue grew 4x in May 2021 over last year and its current revenue run rate is at about USD 60 million.
“Currently, Vedantu is at cash flow profitability of more than 15 per cent on the unit level and is looking at achieving a USD 200 million run rate in the next 12 months with overall company profitability. The platform has a strong community of over 30 million registered users and added 22 million new users since the pandemic began,” a statement said. It added that personalised access, interactive classes, and 24/7 customised content have resulted in “4X annual growth in paid subscribers to more than 200,000”.
Vedantu said it has witnessed majority adoption from outside the top 10 cities with 60 per cent of students from these markets. Its learner base currently spans across over 10,000 cities and towns in India and more than 50 countries globally. The attendance rate in live online classes conducted by Vedantu touched an all-time high of 82 per cent, with retention rates of 92 per cent, it added.
“The past couple of months have been one of the fastest periods of growth for the organisation…Our scalable tech platform combined with inspiring master teachers and content has enabled us to deliver consistent experience and outcomes even at a 4X scale,” Vamsi Krishna, co-founder, and Chief Executive Officer of Vedantu, said.
Vedantu, which had launched its new vertical ‘Superkids’ for children aged 4-10, has seen this business contribute 15 per cent of the total revenues within nine months. Reading, speaking, and coding are some of the verticals with mathematics and logic going live in the next few months. The company is also introducing tuitions for Grade 3-5.
In July last year, Vedantu had announced a USD 100 million (about Rs 752 crore) fundraise, led by US-based investment firm Coatue. The Series D round, which had seen participation from existing investors as well, had pushed Vedantu’s valuation to USD 600 million.
The edtech space has seen strong growth globally, including in India, with the COVID-19 pandemic serving as an inflection point. A number of offline classes went online to ensure continuity of education while adhering to social distancing norms. A number of players have raised fresh funding from investors, along with consolidation as seen with deals like Unacademy acquiring PrepLadder and Byju’s acquisition of Aakash Educational Services Limited.