Edtech firm Vedantu had its bests quarter ever, as it turned profitable in Q4 and notched Rs 90 crore in collections, up 67 percent from the year-ago period, with over Rs 6 crore in free cash flow, chief executive officer and co-founder Vamsi Krishna has said.
“This wasn’t even our peak quarter, which puts us on a clear trajectory for a cash flow positive FY26,” Krishna said in a LinkedIn post following the company’s board meeting.
The strong performance capped what Krishna described as Vedantu’s best financial year since inception. For FY25, the company reported Rs 284 crore in collections, up 55 percent from FY24, while cutting its cash burn by 30 percent to Rs 70 crore.
Vedantu’s performance comes at a time when investor sentiment around the edtech sector — particularly in the K-12 space — has been tepid. Krishna took the opportunity to push back against what he called a “bleak” and “unfair” narrative.
“Let’s talk numbers, because they speak volumes,” he wrote, adding while FY23 saw a dip from the pandemic boom of FY22, Vedantu has grown 10X over pre-COVID FY20 levels — implying around 50 percent compound annual growth rate over five years.
The company’s online K-12 business, which many had written off as post-COVID demand waned, grew 33 percent YoY in FY25. That growth accelerated to 70 percent YoY in the last two quarters. “Offline has provided a boost, but online is thriving,” Krishna said.
Now in its tenth year, Vedantu appears to be doubling down on digital delivery and student outcomes. Krishna said the long-term opportunity in K-12 education remains massive in India, driven by parents’ continued focus on quality learning solutions.
“This sector is undervalued, making it a prime opportunity for builders and investors,” he said, calling for a rethink of pessimism around edtech.
The turnaround comes as several edtech firms have been forced to pivot, consolidate, or shutter amid tighter funding conditions and a reset in growth expectations. Vedantu’s profitability, paired with solid revenue momentum and tighter cost controls, could mark a new chapter not just for the company, but for the broader sector.
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