Eruditus posts Rs 3,733 crore revenue in FY24, EBITDA loss narrows by 83%

Eruditus posts Rs 3,733 crore revenue in FY24, EBITDA loss narrows by 83%

Higher education and upskilling platform Eruditus reported a modest 12 percent revenue growth to Rs 3,733 crore in financial year 2023-24 (FY24), while significantly narrowing its operating losses during the year.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss declined by 83 percent to Rs 69 crore, on the back of operational efficiencies, as against Rs 417 crore in the previous year.

Improvements in EBITDA were driven by a reduction in marketing expenses, which went down from 29 percent of revenue in FY23 to 27 percent in FY24. Furthermore, operating expenses decreased from 36 percent of revenue in FY23 to 28 percent in FY24.

To be sure, Eruditus is the largest operational edtech company in India by way of revenue. Its revenue is 1.9-times larger than Noida-based PhysicsWallah (PW), and nearly twice as much as Ronnie Screwvala-led UpGrad.

In terms of valuation, at $3.1 billion, Eruditus is the second largest edtech firm, behind Unacademy, while PW and UpGrad occupy the third and fourth spots, respectively. Beleaguered edtech firm Byju’s, which was valued at $22 billion at its peak, has been ousted from the top five after it went into insolvency.

In FY25, Eruditus is expecting to record higher growth while making further improvements in profitbaility, the firm’s co-founder and executive director Chaitanya Kalipatnapu, told Moneycontrol in a recent interaction.

“This year (FY25), we are expecting to grow over 20 percent. We are also on track to increase our profitability at least three-fold…On a booking basis, in FY24, we were profitable at Rs 28 crore. There might be some changes in this number when we file on an accrual basis. But it will not be very different,” he had said.

The company’s FY24 financials come hot on the heels of a major funding round. Eruditus picked up $150 million in a Series F round, led by TPG’s The Rise Fund, the multi-sector strategy of TPG’s global impact investing platform, in October last year, in what was its first major equity round since August 2021.

Back then, the company raised its largest-ever round of $650 million at a valuation of more than $3.2 billion. Since then, Eruditus has only secured debt from various institutions.

Excluding the latest round, Eruditus has raised over $814 million in equity funding to date and counts SoftBank, Prosus, Peak XV Partners (formerly Sequoia Capital India), Chan Zuckerberg Initiative, GSV Ventures among others as its backers.

Large rounds like the one raised by Eruditus helped bolster edtech funding in 2024, offering some much-needed respite to a sector that has been slower than others to recover from the funding winter.

Edtech startups in India raised a total of $652.5 million in funding across 81 funding rounds in 2024, up 136 percent from $276 million across 123 rounds in 2023. This was, however, much lower than the peak of $3.6 billion raised in 2021, according to data from Tracxn – a market intelligence platform.

Eruditus is currently in the process of shifting its domicile from Singapore to India, as it eyes an initial public offering (IPO) in the near future.

The company is among several other edtech firms, including PW and UpGrad, that have outlined plans to go public.