SoftBank and Peak XV-backed edtech unicorn Eruditus said it reported a revenue of Rs 3,320 crore in FY23, which was a 75 percent jump from the same period last year. With that increase in the top line, the edtech startup said it is is among the top two revenue making online edtech firms in India, along with Byju's.
While Eruditus' revenue was higher than that of Unacademy, Vendantu, UpGrad and others individually in FY23, its performance can’t be compared to all players in the industry.
Byju’s, the most funded startup in the edtech segment, is yet to file its audited FY23 results. The company generated a revenue of more than Rs 5,000 crore in FY22, media reports said. Its core business, excluding all acquisitions, stood at Rs 3,569 crore in FY22, as reported in November last year.
Byju's and Eruditus have some common investors, including Prosus and The Chan Zuckerberg Initiative.
Founded by Ashwin Damera and Chaitanya Kalipatnapu in 2010, Eruditus offers management education courses, degree programmes and professional certificates in collaboration with business schools.
Bulk of Eruditus' revenue, around 80 percent, comes from outside India, as the country accounts for about a fifth to the total revenues, the founders had told Moneycontrol in an earlier interview. The company, however, said that India would become its fastest-growing market in the months to come.
While Eruditus' revenue jumped, the company said its total expenses (excluding finance cost and taxes) fell 17 percent in FY23 from the previous fiscal. The company did not provide specific numbers.
Lower expenses helped Eruditus narrow its losses to Rs 1,049 crore (around $128 million). The improvement in the company's bottom line was after its losses widened to $383 million in FY22 from $265 million in FY21.
Eruditus follows a July-June financial year as it is incorporated in Singapore.
“Marketing expenses as a percentage of revenue reduced from 56 percent to 29 percent in FY23 while employee expenses, excluding non-cash share appreciation expense, reduced from 46 percent to 27 percent,” the firm said in a release.
The edtech has raised $585 million in primary capital from Accel, PeakXV, Prosus, CPPIB, Bertlesmann, The Chan Zuckerberg Initiative and others.
SoftBank and Canada Pension Plan Investment Board are evaluating an investment in the upskilling and higher education platform potential secondary funding round, sources had told Moneycontrol.
The firm, which plans to foray into the study abroad category, is aiming for profitability in FY24 (July-June 2023-24) on a bookings basis as it is witnessing strong growth in its revenue with working professionals increasingly opting for upskilling.
Bookings revenue or collection revenue is the total sales generated by the company during a fiscal year that also includes deferred revenue, i.e. advance fees collected for services that will be delivered over a period of time.
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