The latest financial performance of Vedantu paints an interesting picture of tenacity and adaptation in the turbulent edtech sector. The company managed to cut down its losses by 58% in FY24 and bring them down to INR 157.52 Cr from INR 372.64 Cr in the previous fiscal year.
The edtech unicorn reported a 21% growth in operational revenue and reached to INR 184.50 Cr in FY24. Its total revenue reached to INR 199.23 Cr with an additional income. The company once relied heavily on aggressive growth strategies, but later underwent shift towards financial prudence and this is a positive sign now. However, the real story lies in the way Vedantu manages to cut costs dramatically and particularly in employee as well as promotional expenses. It has laid off about 1,100 employees in FY23 and the company saw its employee benefit expenses drop by 44%. Similarly, reducing promotional spending by 70% reflects a clear pivot from a “growth at all costs” approach to a more measured strategy.
Vedantu has now ventured into curated courses for younger children of grades 4 to 12 and simultaneously coaching for competitive exams like NEET and JEE. The diversification is smart and especially in a market where families are looking for flexible learning options which are tailored to different age groups.
The edtech sector remains a tough battlefield and companies like BYJU’S and Unacademy have faced their own challenges. The pressure on the industry is immense and the road to recovery will be long.
