Skillmatics: Growth and Investment in Educational Toys

Skillmatics is a prominent startup focused on educational toys and games, now exploring options for new capital to support its business expansion. This potential funding comes as the company has successfully increased its revenue while maintaining profitability.

According to consolidated financial statements filed with the Registrar of Companies (RoC), Skillmatics reported a notable 34.5% increase in operational revenue year-on-year (YoY), reaching Rs 659 crore in FY26, up from Rs 490 crore in FY25.

Based in Mumbai, Skillmatics operates a direct-to-consumer (D2C) and omnichannel edutainment business model, providing educational toys and learning games aimed at children aged one to twelve years. The company distributes its products via its own website, e-commerce platforms, and retail outlets around the globe.

Skillmatics has established a presence in over 25 countries and maintains partnerships with more than 3,000 retail outlets internationally, with a significant focus on the North American market. A substantial portion of its revenue is generated from overseas markets, with approximately 87% of its operating revenue originating outside India, primarily from its US-based subsidiary, Grasper Global Inc.

In FY26, the company reported Rs 7.52 crore in additional income, bringing its total revenue to roughly Rs 667 crore, compared to Rs 496 crore in FY25.

While Skillmatics has experienced robust revenue growth, its expenditures have escalated at a quicker rate. The total expenditure for FY26 increased by 36.1%, reaching Rs 652 crore, up from Rs 479 crore in FY25.

Marketing has been one of the largest costs for Skillmatics. During the year, the company allocated around Rs 169 crore to marketing, which represented about 26% of its total expenditure. The costs associated with manufacturing toys and games also ranked as a significant expense, amounting to approximately Rs 130 crore in FY26. Additional expenses, including packaging, commissions, transportation, employee benefits, and other operational costs, further contributed to the overall increase in expenditure.

As costs rose faster than revenue, the company’s profit growth faced limitations. Skillmatics’ net profit saw a slight increase of 4.2%, reaching Rs 17.57 crore in FY26, compared to Rs 16.86 crore in FY25. The EBITDA margin was recorded at 1.75%, while the return on capital employed (ROCE) stood at 5.14% for the fiscal year.

On a unit basis, Skillmatics spent approximately 99 paise to generate every rupee of operating revenue in FY26, reflecting the financial pressure from its increasing cost structure. The company concluded FY26 with current assets approximating Rs 222 crore, which included cash and bank balances of Rs 75.5 crore.

Skillmatics has strategically developed its business to cater to global markets, particularly in North America, where it has established a significant footprint through both online and offline channels.

To date, Skillmatics has raised around $28 million through various funding rounds and counts notable investors such as Peak XV Partners and Sofina among its supporters. The uptick in revenue indicates that Skillmatics continues to expand its international presence, although the profit growth remains temperate due to high marketing, manufacturing, and international operational costs.