In FY21, upGrad’s net deficit deepens due to a twofold increase in advertising expenses
- ByStartupStory | January 17, 2022
The net loss of Ronnie Screwvala’s edtech firm upGrad Education Pvt Ltd nearly tripled in 2020-21 (FY21), as the company increased its advertising and promotional expenses.
According to the company’s filings with the Ministry of Corporate Affairs (MCA), the company reported a consolidated net loss of Rs 211 crore for FY21, compared to a net loss of Rs 78 crore for 2019-20 (FY20). In FY21, the company spent Rs 205 crore on advertising and promotion, up from Rs 95 crore the previous year. Employee perk costs more than doubled to Rs 161 crore from Rs 89 crore a year ago.
The company reported a net loss of Rs 202 crore for the fiscal year under review, compared to a loss of Rs 78.89 crore the previous year.
Meanwhile, due to pandemic-related restrictions on people’s movements, upGrad’s consolidated revenue nearly quadrupled to Rs 302.26 crore in FY21, resulting in an increase in demand for online education. The edtech firm’s consolidated revenues were Rs 162.57 crore a year ago.
UpGrad and other edtech companies are benefiting from the trend to online tutoring, and many companies are forecasting substantial revenue growth in 2021-22 (FY22). Mayank Kumar, Co-founder and Managing Director of upGrad, told VCCircle in a recent interview that the company is on target to double its revenue in FY22. Eruditus, a SoftBank-backed edtech startup, expects its revenue to treble in FY22.
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