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Eruditus revenue jumps 75% in FY23; losses narrow to Rs 1,049 crore

Founded by Ashwin Damera and Chaitanya Kalipatnapu in 2010, Eruditus served 250,000 students across 80 countries in FY23

Eruditus says it’s now biggest edtech player

Eruditus has raised a total funding of $814 million from investors such as Accel, PeakXV, SoftBank, Prosus, CPPIB, Bertlesmann, and Chan Zuckerberg Initiative, according to Tracxn

Peerzada Abrar Bengaluru

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Eruditus, the SoftBank-backed edtech company, said that its revenue jumped 75 per cent in FY23 to Rs 3,320 crores. The firm said it is now the largest edtech player in India based on published financials for FY23, ahead of companies such as upGrad, Unacademy, Great Learning, Physics Wallah, and Simplilearn. The company has not compared its results with Byju’s as the edtech giant’s FY23 audited financials are unavailable.

“Revenue as per IFRS (International Financial Reporting Standards) audited financials grew from Rs 1,900 crore in FY22 to Rs 3,320 in FY23, representing a growth rate of 75 per cent YoY,” said the company.
 

Total expenses (excluding finance cost and taxes) reduced by 17 per cent in FY23 over FY22.

Marketing expenses as a percentage of revenue reduced from 56 per cent to 29 per cent to Rs 956 crore. Employee expenses (excluding non-cash share appreciation expense) as a percentage of revenue reduced from 46 per cent to 27 per cent to Rs 889 crore. Other operating expenses as a percentage of revenue reduced from 13 per cent to 9 per cent to Rs 310 crore.

Lower expenses helped Eruditus narrow its losses to Rs 1,049 crore. This is an improvement in the company's bottom line. Its consolidated net loss rose 46 per cent year-on-year (YoY) to $386.8 million in the year ended June 30, 2022 (FY22). It closed FY22 with $245 million in revenue.

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Adjusted EBITDA (EBITDA excluding non-cash expenses such as depreciation, amortization, expense for share appreciation rights, etc.) stood at -13 per cent in FY23.

Founded by Ashwin Damera and Chaitanya Kalipatnapu in 2010, Eruditus served 250,000 students across 80 countries in FY23. The Mumbai-based company works with over 80 university partners globally and offers more than 1,000 courses in topics such as artificial intelligence, data science, coding, finance, business, and leadership.

Eruditus has raised a total funding of $814 million from investors such as Accel, PeakXV, SoftBank, Prosus, CPPIB, Bertlesmann, and Chan Zuckerberg Initiative, according to Tracxn. In August 2021, it achieved a valuation of $3.2 billion after raising $650 million in a financing round led by Accel and SoftBank Vision Fund 2.

Rival company Byju’s is yet to publish its consolidated financials for FY22 as well as FY23. Byju’s parent, Think & Learn, faced consolidated losses of about Rs 8,245 crore in FY22, according to the financials presented to the shareholders. This is an increase from the Rs 4,564 crore in the previous period. WhiteHat Junior, a coding startup acquired by Byju’s in 2020 for approximately $300 million and which had to be written off, has been a significant contributor to the losses, according to sources. The firm earned consolidated revenues of over Rs 5,015 crore for the year, an increase from the Rs 2,280.2 crore in FY21. However, the firm missed the target revealed in September 2022, where it projected its gross revenues to grow to Rs 10,000 crore in FY22.

The company recently revealed the financials of its core business based on an “unqualified financial year 2022 audit”, indicating the auditor’s approval of its financial reporting. Think and Learn reported a 2.3-fold increase in its core business, achieving an income of Rs 3,569 crore for 2021-22, up from the Rs 1,552 crore in the prior year. The EBITDA (earnings before interest, tax, depreciation, and amortisation) loss of the core business decreased from Rs 2,406 crore to Rs 2,253 crore, with a margin improvement from -155 per cent to -63 per cent, from FY21 to FY22.

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First Published: Jan 22 2024 | 7:39 PM IST

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