Japan's Softbank-backed edtech major Eruditus has reported a remarkable 75% increase in revenue, reaching Rs 3,320 crore for the fiscal year 2023.
The remarkable growth has positioned Eruditus as India's leading edtech player, surpassing competitors such as upGrad, Unacademy, Great Learning, Physics Wallah, and Simplilearn.
Improved Gross Margin and Reduced Expenditure
The startup also highlighted positive trends in its financial performance. Eruditus saw an improvement in its gross margin, with Rs 1,734 crore reported on a year-on-year basis.
Additionally, the startup reduced its overall expenditure (excluding finance costs and taxes) by 17% compared to the previous year. While the exact total spending remains undisclosed, the reduction can be attributed to a decrease in marketing and employee benefit expenses.
While the company witnessed a strong growth in its revenue, It also significantly reduced its its marketing costs by 56% of its revenue to 29%, amounting to Rs 956 crore.
The money spent on employees, not counting the cost of non-cash share appreciation, also decreased from 46% of revenue to 27%, totalling Rs 889 crore. Other operating costs were reduced from 13% of revenue to 9%, which is Rs 310 crore.
The reduciton in expenses helped Eruditus to lessen its losses to Rs 1,049 crore in FY23 from Rs 3,094 crore in FY23.
Eruditus specialises in providing online and classroom-based management education programs. It collaborates with prestigious business schools, including Columbia, MIT, London Business School, Harvard Business School, INSEAD, and Tuck at Dartmouth.
In addition to international courses, Eruditus offers programs from renowned Indian institutions such as IIT Kozhikode, IIM Lucknow, and BML Munjal University. The primary source of revenue for Eruditus is the sale of its educational services.
It also plays a vital role in upskilling and training the corporate workforce through Emeritus, which boasts of educating more than 2,50,000 individuals in over 80 countries.
Eruditus' future Plans
The Eruditus Group operates through ten subsidiaries in seven countries: the USA, China, India, Mexico, UK, Singapore, and UAE, showcasing its extensive global reach.
The company also has IPO plans in the route. As part of this strategy, It intends to relocate its headquarters in preparation for an eventual initial public offering (IPO).
According to reports, Eruditus is in discussions with prominent consulting firms such as Deloitte, Ernst & Young, KPMG, and PwC to facilitate the relocation process, ensuring a smooth transition as it prepares for its IPO journey.
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