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Vedantu’s losses cross Rs 600 cr in FY22

Vedantu, which has fired over 1,000 employees in four different rounds, also saw its total expenses jump 19% to `891 crore in FY22, from `748 crore in FY21.

Vedantu's losses cross Rs 600 cr in FY22
Vedantu, which has fired over 1,000 employees in four different rounds, also saw its total expenses jump 19% to `891 crore in FY22, from `748 crore in FY21. (File)

Vedantu, the edtech unicorn, saw its losses climb further by 13% from Rs 616 crore in FY21 to Rs 696 crore in FY22. This at a time when it reported a revenue of just `169 crore in the financial year, while that was an increase of 80% from `94 crore reported in FY21, it was significantly smaller in terms of scale. 

While all its competitors, except Physics Wallah (PW), are in the red, their revenues have been much higher. SoftBank-backed Unacademy for instance saw its revenue jump 80% to `719 crore in FY22 while its losses shot up 85% to `1,537 crore. Next, Temasek-funded upGrad registered a revenue of `679 crore in FY22, nearly double of what it had generated in FY21 figures while its losses jumped about 3X to `627 crore year-on-year (y-o-y) during the same period.

PW has been an exception so far because until June last year it was bootstrapped and had no venture capitalists pushing the startup to chase growth at all costs. In FY22, PW’s revenue jumped 9.5X to Rs 233 crore but its profits increased at a faster rate of 14X to `98 crore in the same period, up from `7 crore in FY21. FY23 will be the Alakh Pandey-led company’s first year of operations after raising external capital. Byju’s hasn’t reported its FY22 results yet. PW has raised $100 million from WestBridge, GSV Ventures and others at a valuation of $1.1 billion. 

Vedantu, which has fired over 1,000 employees in four different rounds, also saw its total expenses jump 19% to `891 crore in FY22, from `748 crore in FY21. Employee benefit expenses at `489 crore in FY22 were 20% higher y-o-y and accounted as the company’s largest cost centre. Advertising and promotional spends, largely unchanged from FY21 at `182 crore were Vedantu’s second largest expenses component in the year.

So far in FY23, Vedantu has stepped up its offline play by acquiring a majority stake in Deeksha, a group which operates several schools and colleges primarily in the south of India, for $40 million in October last year. This comes at a time when the Accel-backed edtech startup is preparing for an IPO in FY26, as reported earlier. 

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First published on: 01-02-2023 at 01:30 IST