Skillmatics: D2C Educational Brand Growth and Financials

Skillmatics, a direct-to-consumer (D2C) educational product brand, has achieved a remarkable 39% growth in its operational scale during the fiscal year ending March 2025. However, the Mumbai-based company encountered financial losses due to increased employee expenses in the same timeframe.

According to Skillmatics’ financial statement filed with the Registrar of Companies (RoC), the company’s operating revenue surged 39% to Rs 103 crore in FY25 from Rs 74 crore in FY24. Established in 2016, Skillmatics focuses on producing educational products and games aimed at children under the age of 10. The sales of these educational products represented 89% of its operating revenue. In total, including a non-operating income of Rs 8.6 crore, the company reported total income amounting to Rs 111.6 crore for the year.

Geographical Breakdown of Sales

India contributed significantly, accounting for 62% of product sales, which experienced an 87% increase reaching Rs 58 crore in FY25. Conversely, sales from markets outside of India comprised the remaining 38%, but saw a 16% decline, dropping to Rs 36 crore in FY25.

Rising Expenses and Financial Losses

The company’s overall expenses inflated by 39% to Rs 114 crore in FY25, up from Rs 82 crore in FY24. The largest share of costs was attributed to materials, making up 44% of total expenditures, which grew by 22%, reaching Rs 50 crore in FY25, up from Rs 41 crore in FY24. Employee benefits increased by 41% to Rs 24 crore, while advertising expenditures doubled to Rs 18 crore.

Additional notable expenses included packing, storage, and transportation at Rs 8 crore, product listing fees at Rs 3 crore, and other overheads at Rs 11 crore. For a comprehensive breakdown of expenses, please consult various financial sources.

This significant rise in expenses resulted in Skillmatics reporting a net loss of Rs 2.5 crore in FY25, contrasting with a profit of Rs 40 lakh in FY24. The company exhibited a return on capital employed (ROCE) and an EBITDA margin of -5.66% and -10.10% respectively.

Operational Efficiency Metrics

On a unit level, Skillmatics spent Rs 1.11 to generate a rupee of operating revenue, a metric that remained consistent with the previous fiscal year. Meanwhile, cash and bank balances were recorded at Rs 45 crore, with current assets valued at Rs 107 crore in FY25.

Investment Highlights

According to various reports, Skillmatics has successfully raised approximately $24 million in total funding to date, with Peak XV Partners and Sofina identified as lead investors. The company’s co-founders, Dhvanil Sheth and Devanshi Kejriwal, hold a 44% stake in the company.