CollegeDekho, a platform specialising in higher education services and college admissions, has achieved a 32% increase in revenue for the fiscal year ending March 2024. Despite this growth, the company’s net loss remained unchanged at Rs 129 crore compared to FY23. The firm’s revenue from operations rose to Rs 216 crore in FY24, up from Rs 163 crore in the previous year, as per its consolidated financial records filed with the Registrar of Companies (RoC).
Founded in 2015, CollegeDekho acts as a marketplace facilitating college admissions and providing higher education services. Its services encompass student counselling, lead generation, partnerships with universities, education loans, test prep, and overseas study options. Although the company has not detailed its entire revenue distribution, it primarily generates income from commission on admissions, marketing services, promotion and advertising, online coaching, and other tech-based solutions. Additionally, it gained Rs 6 crore from interest and investment returns, bringing its total revenue for FY24 to Rs 222 crore.
In FY24, CollegeDekho dedicated 45% of its total expenses to employee benefits, amounting to Rs 156 crore, which was a 5% reduction from the prior year. This figure includes Rs 8 crore in ESOP costs, which are non-cash items. Advertising and promotional expenses were the next largest, rising by 35% to Rs 97 crore, indicative of intensified efforts to boost brand awareness and attract customers.
The company’s outsourcing and subcontracting costs saw a 33% increase in FY23, and in FY24, total expenses, which included legal, rent, provision for doubtful debts, travel, and other costs, climbed by 16% to reach Rs 349 crore from Rs 302 crore in FY23.
Despite the enhancements in revenue, the company’s losses remained consistent at Rs 129 crore in FY24. The ROCE and EBITDA margin were -78% and -44.6%, respectively. On a per-unit basis, CollegeDekho expended Rs 1.62 for every rupee of operational revenue. At the end of FY24, its current assets were recorded at Rs 211 crore, with cash and bank balances of Rs 3 crore.
CollegeDekho has secured over $60 million in total funding, including a $9 million investment last year from existing investors. CarDekho is noted as the largest external stakeholder, followed by Winter Capital.
In a fiercely competitive landscape, such significant losses are concerning for CollegeDekho. Besides competing with large players, the company faces challenges from various startups diversifying into profitable segments like foreign admissions with innovative solutions. There is a critical need for a standout player like CollegeDekho to establish a distinctive market presence by developing exclusive intellectual properties. This could involve generating comprehensive reports on college facilities, thorough evaluation studies, or placement data analysis. The current gaming of rankings, dubious data, and often exaggerated claims highlight a sector in flux. The rise in private colleges and surging fees point to state inadequacies rather than achievements. A growing awareness of these systemic failures is emerging, possibly leading to significant sectoral disruptions by the next general elections. Service providers like CollegeDekho must strategically position themselves for the anticipated changes to safeguard their long-term sustainability.
