Teevra Edutech Pvt Ltd which operates the ed-tech brand SpeEdLabs, aims to close FY23 with net revenue worth Rs 25 crore, Vivek Varshney, founder, SpeEdLabs told FE Education, he however declined to comment on net loss. “We look forward to scale up and expect to get right and big investors so that we can reach our targeted revenue,”he said. The company claims to have registered a 4x growth in revenue from sale of its products such as business-to-business (B2B) ed-tech Software as a service (SaaS) products, to Rs three crore in FY22 from 70 lakh FY21. The company aims to grow 10 times to reach the Rs 30 crore mark in FY23.
SpeEdLabs which has been operational for more than 6.5 years, claims to have utilised the first two years of its operations in finalising the product and content. This was followed by partnership, besides building sales in the next few years. In FY22, the company raised Rs 14.31 crore from Mumbai Angels, LetsVenture, Ecosystem Ventures and SucSeed Ventures in a pre-series funding round. “In the next 10 to 12 months, we aim to raise $20 million,” he added.
Regulatory files accessed by business intelligence platform Tofler revealed that SpeEdLabs revenue from operations increased 3.22% to Rs 2.69 crore in FY21 from Rs 2.60 crore during the same period in previous year. The company’s net loss declined 11.68% to Rs 3.35 crore in FY21 from Rs 3.74 crore in FY20. In the last two years, the company claims to have registered more than 1.5 lakh students.
SpeEdLabs claims to run majorly on business-to-business (B2B) based business model, under which it provides services to various schools and small tuition centres at certain price points. For coaching centres the average ticket price is Rs 1,200 per student per year, while for schools the rate stands at Rs 1,000 per student per year. However, depending upon the location and capacity of the institutions, the company claims to provide the products at negotiable prices. “As we are in the third year, we have discounted the price to gain the sale, especially for schools from tier 2 and tier 3 cities, who cannot afford a higher ticket price,” Varshney said. Besides, the company claims to get 15% of this revenue share from business-to-consumer (B2C) models, at an average ticket price of Rs 9,500, where it sells its products directly to the students.
Currently, the company claims to work with more than 50 schools and 3,000 tuition centres in over 300 cities across the country. In academic year (AY) 2022-23, SpeEdLabs aims to tie-up 200 schools and by the end of FY24 the company plans to partner with more than 2,000 schools. “The tuition industry in India is a Rs 2.5 lakh crore investment every year, of this only eight percent are nationally organised. The remaining 92% are individual and unorganised tutors who are segmented in different parts. We want to partner with them so that they can ensure a transition from printed, traditional mode to more analytical and personalised solution based outcome after the physical lecture,” Varshney said.
SpeEdLabs plans to launch its Hindi medium content in nine states including Rajasthan, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh and Chhattisgarh. Currently, the company claims to have set its sales team present in around 50 cities targeting various schools to collaborate with. “By March 2023, we have set a target of 25,000 tutors on our platform and be present in 150-200 cities across India,” Varshney noted.