Edtech unicorn Vedantu has recorded a net loss of ₹696 crore in FY22, which is 13 per cent more than its ₹616 crore loss in FY21, according to the company’s MCA filings.  

The company’s losses continue to mount even as its revenue has increased by almost 80 per cent from ₹94 crore in FY21 to ₹169 crore in FY22. Employee benefits were the biggest expense for the company in FY22, making almost 55 per cent of Vedantu’s total expenses, followed by advertising expenses.  

Layoffs

The company spent ₹489 crore on employee benefits in FY22 as compared to ₹407 crore in FY21. Vedantu has let go over 1,100 employees in 2022, citing uncertain market conditions. 

Funding winter has had a harsh impact on late-stage companies, with edtech amounting to the highest number of start-up layoffs in India. Unicorn companies like Byju’s, Unacademy and Udaan have done multiple rounds of layoffs in 2022 in an attempt to secure runways, cut costs, and become profitable. 

In 2021, Vedantu entered the unicorn club by raising a $100 million Series E round from Singapore-based impact investing fund ABC World Asia.  The round also saw participation from existing investors – Coatue, Tiger Global, GGV Capital, Westbridge among others. In June 2022, Vedantu launched its first hybrid centre, Vedantu Learning Center, in Muzaffarpur, Bihar. The company expects hybrid learning initiatives to contribute about 15-20 per cent to Vedantu’s business in the next financial year.

Vedantu offers individual and group classes across K12 and test preparation segments. Students can take individual or group classes on its app or website online. Over a million students are said to attend live classes on Vedantu every month and more than 35 million users every month across 10,000+ cities and 57+ countries access free content, tests, doubts, videos on Vedantu‘s platform and its channels on YouTube.  

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