In FY21, Six-year-old Edtech startup: Doubtnut spent Rs 105 Cr to earn Rs 2 Cr
- ByStartupStory | April 11, 2022
In FY21, Doubtnut, the Edtech startup Doubtnut was in advanced talks with Byju’s in order to get acquired but at the last moment due to differences over valuation the deal fell through. Nevertheless, the fallout didn’t impact Doubtnut and at a valuation of over $120 million, it managed to raise $31 million.
In the last fiscal year, Doubtnut hasn’t managed to record high revenues from operations, while the company pulled off the Series B round easily. During FY21, Doubtnut generated Rs 2 crore in revenue and through subscription services, all its income came, the company’s annual financial statements with the Registrar of Companies (RoC) show.
In FY20, even though it’s a significant jump in revenue from Rs 8 lakh, the amount spent in order to achieve these numbers is unusually high. In FY21, the company’s total cost was Rs 105.2 crore, a 3.85X jump in FY20 from Rs 27.3 crore.
The biggest cost for the six-year-old company was formed by the Employee benefit expenses. It accounted for 33% of the total expenses which recorded a jump in FY21 of 4.43X to Rs 34.3 crore from around Rs 7.75 crore in FY20.
Around 24% of the total cost was spent by Doubtnut on advertisement and business promotion. In FY21, this cost soared 2.86X to Rs 25.18 crore from around Rs 8.79 crore in FY20. Importantly, during the last fiscal year (FY21), for the company ROAS (return on ads spent) stood at only 7% .
In FY21 from Rs 4.90 crore and Rs 2.5 crore in the previous fiscal year (FY20), Information Technology (IT) expenses and legal-professional fees also increased 3.24X and 6.67X to Rs 15.90 crore and Rs 16.69 crore respectively.
In FY21, Royalty expense also recorded Rs 3.45 crore which was nil in the previous financial year and cost for rent increased by 43% from 2.67 in FY20 to Rs 3.82 crore in FY21.
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