Edtech

Vedantu’s Revenue Declines Below FY21 Levels; Losses Narrow by 57.7% in FY24

• ByStartupStory     |    December 19, 2024

Bengaluru-based edtech unicorn Vedantu has reported a significant drop in revenue from its core business operations for the financial year 2023-24 (FY24), falling below the levels achieved during FY20-21. This marks the second consecutive year of decline, highlighting the ongoing challenges faced by the edtech industry as it transitions from the pandemic-induced boom.

Vedantu’s standalone operating revenue dropped 35.7% year-on-year (YoY) to Rs 77.6 crore in FY24, compared to Rs 120.6 crore in FY23. The decline is stark when juxtaposed against the Rs 165.8 crore reported in FY22, reflecting the peak of pandemic-driven online learning. However, the company’s consolidated operating revenue, which includes earnings from subsidiaries, showed a 21% YoY increase, reaching Rs 184.5 crore for FY24.

Despite the slowdown in core revenue, Vedantu managed to narrow its consolidated losses by 57.7% YoY, reducing them to Rs 157.5 crore in FY24. The firm’s total income, including interest and gains on the sale of current investments, rose 14% YoY to Rs 199.2 crore.

Vedantu’s leadership, led by CEO and co-founder Vamsi Krishna, has been focusing on sustainable growth, moving away from the aggressive, funding-driven strategies that characterized the earlier phase of edtech expansion.

“The goal is to build a sustainable education company that focuses on quality, even if it’s on a smaller scale. The future of education, at least in our space, will be a mix of both offline and online,” Krishna said in an interview with The CapTable earlier this year. “I am sure Vedantu will get there eventually.”

The company has adopted cost-cutting measures to align with its long-term vision. Employee benefits, the largest expense category, were slashed by 44% YoY to Rs 175.7 crore. This reduction includes a nearly 50% drop in salaries, wages, and employee share-based payments. Other expenses, including advertising and promotional activities, were reduced by 70% YoY to Rs 22.8 crore.

Vedantu raised Rs 19.25 crore ($2.3 million) in debt and equity capital from Stride Ventures in September 2023. To date, the company has secured $326 million across 21 funding rounds, according to Tracxn. The edtech firm achieved unicorn status in 2021 after raising $100 million in a Series E round led by ABC World Asia.

However, Vedantu is not alone in facing challenges in the post-pandemic edtech landscape. Unacademy, another prominent player, reported narrowing its losses by nearly two-thirds in FY24 but also saw a decline in operating revenue.

Founded in 2014 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, Vedantu continues to navigate industry hurdles as it works towards a hybrid education model that blends online and offline learning experiences.

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