The spectacular fall of Byju’s had a rub-off effect on the entire edtech sector for some time. But many of its peers seem to have turned the page, showing signs of recovery, revenue growth, reduced losses and even a path to profitability.
PhysicsWallah, for instance, posted a 160% revenue increase in FY24, reaching Rs 1,940 crore. The WestBridge Capital-backed company is also preparing for a $500-million IPO. Adda247 saw its revenue jump 88% to Rs 129.65 crore while narrowing its net loss by 66% to Rs 101 crore. Edtech firm upGrad recorded a 30% year-on-year (y-o-y) growth, while Teachmint and Classplus more than doubled their revenues. Vedantu grew by 21% and Google-backed Cuemath saw a modest 5% increase while reducing its losses by nearly 43%.
Several startups are also approaching profitability. LEAD School achieved a 25% revenue increase to Rs 370 crore and cut its cash burn rate by 65%. The company turned Ebitda-positive in the first quarter of FY25 and expects to break even for the full fiscal year. Great Learning reported a 23% revenue increase to $118 million while maintaining a positive Ebitda. Eruditus grew by 15% to Rs 3,800 crore, with Rs 80 crore in Ebitda profit. Even Unacademy, which saw a 7% revenue decline, managed to reduce its net loss by 62% to Rs 631 crore in FY24 from Rs 1,678 crore in FY23.
Industry experts said these shifts represent a necessary correction. “We are witnessing a fundamental shift. Previously, many edtech firms were chasing top-line growth with unsustainable cash burn rates. FY24 results illustrate a disciplined focus on core product value and operational efficiency. Startups have reined in excess marketing spend, streamlined cost structures and honed unit economics,” said Kushal Bhagia, founder & general partner at All In Capital.
The rise and fall of Byju’s underlines the industry’s volatility. Prior to the pandemic, edtech had limited funding, with Byju’s as its sole unicorn. However, the Covid-19 boom saw startups aggressively chase hypergrowth, often at the cost of profitability. As schools, colleges and coaching centres reopened, the bubble burst, forcing many firms to reassess their strategies amid a global funding winter.
Now, a hybrid model, blending offline and online learning, appears to be stabilising the industry. “The companies have found the right product mix,” said Anil Joshi, managing partner at Unicorn India Ventures.
“They have brought down their customer acquisition costs while improving their offerings, which is helping their customers upskill for better career opportunities,” said Joshi.
This new-found stability is attracting investor interest once again. Data from Tracxn shows that overall funding in the sector surged to $652.2 million in 2024 from $245.5 million in 2023. Reports also suggest that PhysicsWallah is set to raise a $25 million pre-IPO secondary funding round at a valuation of $3.7 billion.
“The investors are always opportunistic, and if they see value in a business, they will invest. The segment has corrected, and investors may once again see edtech as a viable opportunity,” Joshi added.