Edtech startup Classplus revenue doubles to Rs 213 crore in FY24: Report

Edtech startup Classplus has demonstrated remarkable financial growth in FY24, doubling its revenue to Rs 213 crore, up from Rs 102 crore in the previous fiscal year. 

Classplus primarily supports creators in launching their online coaching businesses by providing customized mobile apps and websites for selling online courses.

The startup's operational revenue was largely generated through SaaS tools and software sales—96.6%, or Rs 205.5 crore—while Rs 8 crore came from product sales and related services.

Additional income and strategic investments

Classplus reported a total income of Rs 264 crore for FY24, buoyed by an additional Rs 52 crore earned primarily from interest on fixed deposits. Along with its expanding revenue streams, the startup has been making strategic investments. 

Notably, it has invested in GyanLive, a government job-preparation portal, and launched the Polaris School of Technology, which offers a four-year computer science program in Bengaluru.

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Cost management and reduction in losses

Classplus has made notable progress in cost management alongside its revenue growth. The startup reduced total expenses by 7.3%, lowering its overall expenditure from Rs 405.2 crore in FY23 to Rs 375.7 crore in FY24. 

This reduction was driven by cost-cutting measures, including a 12% decrease in employee benefits, which accounted for 54% of total expenses, and a 7.3% cut in advertising and promotional costs.

Employee benefits for FY24 totalled Rs 201.7 crore, including Rs 38.5 crore in non-cash ESOP costs. These efforts contributed to a 57% reduction in net losses, which fell to Rs 110.4 crore in FY24 from Rs 256 crore the previous year.

According to reports, Classplus has raised around $160 million in funding till date. Tiger Global, Alpha Wave, RTP Global, Blume Ventures, and and GSV Ventures are some of its notable investors.