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Edtech startup Vedantu's FY23 revenue drops 7.8%; cuts losses by 46%

Sumit Vishwakarma
New Update
Vedantu FY23

Bengaluru-based edtech startup Vedantu reported a 7.8% drop in revenue from operations to Rs 153 crore in FY23 from Rs 166 crore in the previous fiscal year. 

Interstingly, the edtech startup managed to significantly reduce its losses by 46.4%, bringing them down to Rs 373 crore from Rs 696 crore in FY22, Entrackr reported.

Vedantu's revenue sources

The company's income primarily comes from online tutoring, which accounts for 94% of its total operating revenue. However, revenue from this segment decreased by 13.3% to Rs 144 crore in FY23.


The remaining revenue came from the sale of books, hostel fees, and e-learning project income.

 Additionally, It earned Rs 22 crore from interest and gains on financial assets, making its total income Rs 175 crore for FY23, down from Rs 191 crore in FY22.

Key cost drivers and expenditures

Employee benefits emerged as Vedantu's largest cost centre, constituting 56.7% of total expenditure. Despite this, the cost of employee benefits declined by 35.8% to Rs 314 crore in FY23.

Overall expenditure also decreased, dropping to Rs 553 crore from Rs 888 crore in FY22.

The reduction was driven by decreased spending on legal matters, advertising and promotions, and information technology. Notably, advertising and promotion expenses fell to Rs 76 crore from Rs 182 crore, and information technology expenses were Rs 21 crore.

Funding and investors

Vedantu's financial health indicators show a mixed picture. The startup's Return on Capital Employed (ROCE) and EBITDA margins were -68% and -198.9%, respectively. On a unit level, the company spent Rs 3.61 to earn a rupee in FY23.

As of March 2023, Vedantu had a net current asset of Rs 299 crore, including cash and bank balances of Rs 39 crore. 

Founded in 2011 by Vamsi Krishna, Anand Prakash, and Pulkit Jain, Vedantu became a unicorn in 2021 following a $100 million Series E investment round led by Singapore-based ABC World Asia.

The startup has raised a total of $328 million across 20 funding rounds.