Bhanzu – Leading Growth in Edtech for Math Learning

Bhanzu has showcased impressive growth in the fiscal year ending March 2025, with operating revenue increasing almost four times. Despite the substantial scaling, the company successfully maintained stable expenses, leading to a 42% reduction in losses during this timeframe.

Financial Performance of Bhanzu in FY25

Based in Hyderabad, Bhanzu’s revenue from operations surged more than 3.7 times from Rs 29.4 crore in FY24 to Rs 109.5 crore in FY25, according to consolidated financial reports filed with the Registrar of Companies (RoC). Established in 2020, Bhanzu offers experiential math learning courses targeted at children aged between 5 to 16 years. According to the company’s official website, they have educated over 50,000 students through various training programs. The sales of these courses were the primary source of operating revenue in FY25.

International and Domestic Market Contributions

Bhanzu also has a strong presence in international markets such as the US, the UK, and the Middle East. The filings indicated that international markets accounted for over 69% of total revenue, amounting to Rs 75.7 crore—a rise of 4.3 times compared to FY24. Conversely, the contribution from the Indian market reached Rs 33.9 crore, reflecting nearly threefold year-on-year growth.

Expenditure Insights for Bhanzu

For Bhanzu, employee benefits represented the largest portion of total costs, constituting 50% of overall expenditure. This expense decreased by 17% from Rs 115.4 crore in FY24 to Rs 96.3 crore in FY25, largely driven by a lower ESOP cost (non-cash), which fell to Rs 11.7 crore from Rs 25.8 crore in the prior fiscal year.

Sales and Marketing Investments

The company, supported by Lightspeed, also allocated significant resources toward sales and marketing, which made up more than 20% of total costs. This investment rose by 46% year-on-year to Rs 40.8 crore in the last fiscal. Additionally, training and recruitment costs surged 2.4 times to Rs 28.6 crore.

Overall Financial Summary

Other expenses, including IT costs, legal and professional fees, rent, and miscellaneous overheads contributed an additional Rs 27.9 crore to total expenditures. Consequently, total expenses increased by 11% to Rs 193.6 crore in FY25, compared to Rs 174.4 crore in FY24.

This 3.7 times growth resulted in a 42% reduction in losses to Rs 79 crore in FY25, down from Rs 135.5 crore in FY24. The EBITDA margin improved to -75.8%, while EBITDA losses reached Rs 83 crore in the previous fiscal year.

Operational Efficiency of Bhanzu

At the unit level, Bhanzu incurred Rs 1.77 for every rupee of operating revenue in FY25. By the end of March 2025, the company reported current assets of Rs 179.5 crore, which included cash and bank balances totalling Rs 167.5 crore. The robust cash position was a result of the $16.5 million Series B funding round led by Epiq Capital during the financial year.