Vedantu’s Impressive Revenue Growth Amid Rising Losses

Vedantu, the prominent Edtech unicorn, witnessed a remarkable 23% annual increase in revenue for the financial year concluding in March 2025. However, this growth was accompanied by a significant rise in expenditures, resulting in a 25% escalation in pre-tax losses, which surpassed Rs 200 crore.

Revenue Insights for FY25

According to its consolidated financial statements from the Registrar of Companies (RoC), Vedantu’s operational revenue rose by 23%, reaching Rs 227 crore in FY25, up from Rs 185 crore in FY24. The company primarily specializes in delivering online classes for grades 6 to 12, alongside providing study materials for grades 1 to 12 and preparation for JEE. In recent years, Vedantu has expanded its offerings by establishing several offline coaching centres.

Online Tutoring Revenue Growth

Income generated from online tutoring comprised 87% of Vedantu’s total revenue, which also saw a 19% increase, rising to Rs 197 crore in FY25 from Rs 166 crore in FY24. Book sales soared, more than doubling to Rs 22 crore, while the rest of the revenue stream included hostel fees and e-learning initiatives for FY25.

Expenditure Breakdown

On the cost side, employee-related expenses represented the largest portion of overall spending, making up 49% of total costs. This figure rose by 24% to Rs 219 crore in FY25, compared to Rs 176 crore in FY24. Additionally, advertising expenditures increased by 17%, reaching Rs 27 crore, while depreciation costs surged to Rs 69 crore, up from Rs 58 crore the previous year. Overall, Vedantu’s total expenses rose by 21%, climbing to Rs 444 crore in FY25 from Rs 368 crore in the previous fiscal year.

Losses and Exceptional Income

The loss before tax escalated by 25% to Rs 210 crore in FY25 from Rs 168.5 crore in FY24. Notably, the company recognized an income of Rs 77 crore as exceptional items (non-cash). When factoring this in, the net losses were reduced to Rs 123 crore in FY25. The exceptional item pertained to Ace Creative Learning Private Limited (Deeksha), where the company possesses a call option, and the founders hold a put option to buy or sell shares at an agreed price. During this period, Vedantu decreased the fair value of the deferred consideration, acknowledging a non-cash income of Rs 93.1 crore (Rs 77.4 crore after tax), classified as an exceptional item and excluded from operational loss calculations.

Financial Metrics and Funding

The company’s Return on Capital Employed (ROCE) and EBITDA margin were recorded at -92.86% and -61.23%, respectively. Vedantu expended Rs 1.96 to generate a single rupee of operating revenue throughout the fiscal year. As of March 2025, the Bengaluru-based enterprise reported cash and bank reserves of Rs 40 crore, with current assets amounting to Rs 101 crore. According to various startup data intelligence platforms, Vedantu has accumulated a total of $348 million in funding to date, boasting notable investors such as Tiger Global, Coatue, Accel, and Omidyar Network.