Upskilling platform FunctionUp aims to close FY23 with net revenue worth Rs 15 crore, Bharat Gupta, co-founder, FunctionUp told FE Education Online, however declined to comment on the net loss. According to Gupta, the company plans to introduce new cohorts in data analytics, product management, user interface (UI) and user experience (UX) design and front-end engineering. “The new cohorts will be launched every 10 days with about 100 learners in each batch,” Gupta said. The company which started operation in July, 2021 claims to have clocked gross revenue of Rs two crore in FY22, while it posted gross loss Rs 50 lakh.
The company’s expenditure includes fee of teachers, technology and operations.
As per the firm it earns a commission of 17% every month, which is paid by its learners from their salary for about 30-36 months. “The minimum package guaranteed to our learners is Rs five lakh. On an average, our learners are recruited at a package of Rs nine lakh,” Gupta said. What this means is that if the company earns a commission of Rs 7,083 every month for a period of 30-36 months from the learner, thereby the total amount earned as commission is about Rs 2.55 lakh. Similarly, it earns Rs 2.95 lakh as commission for the same duration from learners who earn Rs six lakh per annum or more.
Started in July 2021, FunctionUp claimed to have conducted its first cohort in August 2021 with 50-60 students. The company claims to have increased the batch size to 250 to 350 learners on the back of 1:15 teacher-student ratio. It plans to add 6,000 learners by end of FY23. Presently, the cohorts are four months long and it plans to start part-time and weekend cohorts. The company which currently target engineering students plans to target professionals. “Till now, we have enrolled 1,000 students across five cohorts. We usually conduct cohorts at an interval of six to eight weeks. We will soon launch our sixth and seventh cohorts by the end of June,” Gupta added.
Furthermore, FunctionUp claims to receive about 30,000 applications every month of which it claims to select around 300 candidates through aptitude tests and interviews. On the placement front, the company claims to have placed over 100 students across companies such as Paytm, JustDial, and CoffeBeans consulting, among others.
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