Due to escalating employee costs, upGrad’s net loss in FY22 soared to Rs 626 crore
- ByStartupStory | November 11, 2022
UpGrad, an edtech startup founded by Ronnie Screwvala, reported a net loss of Rs 626.61 crore on a consolidated basis in FY22, an increase from the loss of Rs 211.1 crore the year prior.
According to upGrad’s regulatory filings, which were sourced from market intelligence platform Tofler, the losses grew as the company’s employee benefit costs increased by almost 2.4 times in FY22. Employee benefit expenses for the company increased significantly from Rs 161.5 crore in FY21 to Rs 383.16 crore in FY22. On a consolidated basis, upGrad reported an increase in FY22 revenue of over two times, to Rs682.21 crore.
On a consolidated basis, upGrad’s other costs, which include marketing and advertising expenditures, increased by 2.5 times to just over Rs 616 crore in FY22 from Rs 247.6 crore in FY21. UpGrad joins SoftBank-backed Unacademy in disclosing a widening loss despite a surge in revenue for FY22, the second year of the COVID-19 pandemic that provided an uplift to edtech companies to stay-at-home restrictions. Unacademy reported a loss of Rs 2,848 crore for FY22 in October, nearly doubling the loss the SoftBank-backed edtech unicorn incurred in FY21 due to higher employee benefit and ESOP (employee stock ownership plan) costs.
UpGrad also recently announced a $30 million investment in the next year to launch ten global institutes under its new brand, UGDX. UpGrad raised $210 million in August, in one of the largest rounds of funding for edtech companies in India this year.
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