Digital upskilling platform Simplilearn has experienced a significant financial year in FY23. The company's losses expanded by 29% to Rs 244 crore, up from Rs 179 crore in FY22.
The increase in losses was accompanied by a substantial rise in operating revenue, which grew by 50.33% to Rs 684 crore in FY23 from Rs 341 crore in FY21. The total expenditure of the company also saw a nearly 47% surge, reaching Rs 944 crore in FY23 compared to Rs 643 crore in FY22.
Growth and expansion strategies
Simplilearn has been actively pursuing growth and expansion. In FY22, the company raised about $45 million, contributing to its significant growth in operating scale over the last two years.
A notable milestone was the acquisition of Fullstack Academy, a US-based bootcamp education company, in November 2022. The acquisition, made through an all-cash transaction, is expected to drive Simplilearn's revenue growth to $200 million by FY24, with 70% projected from global markets.
Collaborations and program offerings
The company has established collaborations with industry leaders like IBM, Microsoft, AWS, Google, and various educational institutions. These partnerships have enabled Simplilearn to offer a range of digital skilling programs for professionals.
In FY23, Simplilearn conducted over 3,000 live classes, attracting an average of one lakh learners monthly, who collectively invested more than five lakh hours on the platform.
Expenditure and revenue sources
Simplilearn's revenue streams include comprehensive learning programs, hosting services, live and virtual classes, and the sale of examination vouchers.
Advertising and promotional costs accounted for 32% of the overall expenditure, growing by 29.1% to Rs 302 crore in FY23. Employee benefits costs also increased by 42.4% during the last fiscal year.
Simplilearn funding and investors
Simplilearn has raised over $80 million in funding to date and is reportedly valued at around $601 million. Clal Insurance Enterprises Holdings, DisruptAD, GSV Ventures, InnoVen Capital, Kalaari Capital, Helion Venture Partners, and Mayfield Fund are its investors.
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