Skillmatics Achieves 39% Growth in Educational Products

Skillmatics, a direct-to-consumer educational product brand, has reported significant growth in its operating scale, achieving a 39% increase during the fiscal year ending March 2025. Despite this progress, the Mumbai-based business recorded losses attributed to rising employee costs within the same timeframe.

The company’s operating revenue surged to Rs 103 crore in FY25, up from Rs 74 crore in FY24, as per the financial statements submitted to the Registrar of Companies (RoC). Established in 2016, Skillmatics focuses on creating educational products and games designed for children under the age of 10. Sales of these educational offerings accounted for 89% of the operating revenue. With the addition of non-operating income amounting to Rs 8.6 crore, the total income for the year reached Rs 111.6 crore.

Geographical Breakdown of Product Sales

In terms of geography, India contributed 62% of product sales, which witnessed an impressive growth of 87%, reaching Rs 58 crore in FY25. Conversely, the remaining 38% of product sales, generated from outside India, experienced a decline of 16%, totalling Rs 36 crore in FY25.

Rising Expenses Impacting Profitability

Skillmatics faced a 39% rise in expenses, escalating to Rs 114 crore in FY25 from Rs 82 crore in FY24. The primary contributor to this increased expenditure was the cost of materials, representing 44% of the total spending. This cost climbed by 22% to Rs 50 crore in FY25, up from Rs 41 crore in the previous fiscal year. Employee benefits also saw a significant increase of 41%, reaching Rs 24 crore, while advertising costs 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 various overheads at Rs 11 crore. For a comprehensive breakdown of expenses, refer to various sources.

Financial Performance Overview

The increase in costs led Skillmatics to report a net loss of Rs 2.5 crore in FY25, in contrast to a profit of Rs 40 lakh in FY24. The company’s Return on Capital Employed (ROCE) and EBITDA margin stood at -5.66% and -10.10%, respectively.

On a unit basis, Skillmatics spent Rs 1.11 to generate one rupee of operating revenue, maintaining the same ratio as the previous fiscal year. Meanwhile, cash and bank balances were recorded at Rs 45 crore, and current assets totalled Rs 107 crore in FY25.

Funding and Ownership Structure

As reported by various sources, Skillmatics has raised approximately $24 million in funding to date, with Peak XV Partners and Sofina being the primary investors. The co-founders, Dhvanil Sheth and Devanshi Kejriwal, retain a combined ownership of 44% in the company.