Bengaluru-based edtech Simplilearn reported revenue of Rs 773 crore for FY24, a 10% increase from Rs 700.6 crore in FY23, and a 75% reduction in EBITDA losses, from Rs 201.2 crore in FY23 to approximately Rs 50.3 crore in FY24, according to the company. Net losses for FY23 stood at Rs 244.2 crore. This improvement comes as the Bengaluru-based digital upskilling platform, backed by Blackstone and GSV, eyes an initial public offering (IPO) by the end of FY26. Simplilearn had previously stated it achieved quarterly profitability in Q4 FY24 and aims for full-year profitability in FY25.
The company attributed its financial progress to initiatives focused on customer experience and marketing efficiency. Early in FY24, Simplilearn launched a customer experience initiative, which it claims improved retention rates, referral traffic, course completions, and learning outcomes. Additionally, Simplilearn claimed a two-fold increase in its return on ad spend (ROAS), driven by refined performance marketing strategies, including more targeted campaigns and enhancements to its website’s design and user interface.
Simplilearn’s recent operational restructuring has moved profit and loss responsibilities to business unit heads, allowing faster adjustments at the program level. This shift has enabled Simplilearn to scale profitable programs while pulling back on less sustainable areas, such as certain K-12 offerings and the study-abroad category, which the company exited due to limited product-market fit. The company said AI courses, which saw an 85% year-on-year growth, now contribute over 40% of total revenue. Cybersecurity is the second-largest category, accounting for roughly 18-20% of total revenue. It also completely exited study aboard category, during the period.
Founder and CEO Krishna Kumar stated the company remains focused on establishing a profitable business model while delivering on its mission to “transform lives through world-class education.”
Simplilearn’s plans for an IPO will hinge on sustained profitability, and the company is currently evaluating both Indian and US markets for a potential listing. The firm has raised a total of $80.8 million, with the latest being a $45.5 million Series E funding round in November 2022, which valued it at $605 million. Blackstone is the largest shareholder, holding a 61.5% stake, with board oversight from both Blackstone and GSV Ventures.
Founded in 2010, Simplilearn recently relocated its US headquarters to Texas, citing favorable business policies and the movement of key management personnel. The company is exploring potential acquisitions in India, specifically in the consumer and enterprise upskilling segments.