Vedantu reduces losses to Rs 373 crore from Rs 696 crore in one year

Vedantu's loss narrowed to 46.4 per cent. In the financial year 2022, there was a loss of Rs 696 crore, which has been reduced to Rs 373 crore in the financial year 2023.

The company has reported a 7.8 per cent decline in operating income, from Rs 166 crore a year ago to Rs 153 crore in the financial year ending March 2023. As per the annual financial statements filed with the Registrar of Companies (RoC), the Bengaluru-based company's revenue declined from Rs 191 crore in FY22 to Rs 175 crore in FY2023.

The company's employee benefits emerged as the biggest cost center accounting for 56.7 per cent of the total expenditure, which declined by 35.8 per cent to Rs 314 crore in FY2023. The overall expenses of the Tiger Global-backed firm also declined, from Rs 888 crore in 2022 to Rs 553 crore in FY2023. This was achieved through regulation of expenditure on legal matters, advertising, promotions and information technology. The company's advertising and promotion expenses have come down from Rs 182 crore in FY22 to Rs 76 crore in FY2023, with an estimated information technology expenditure of Rs 21 crore in FY2023.

Founded in 2011 by Vamsi Krishna, Anand Prakash and Pulkit Jain, Vedantu became a unicorn startup in 2021 following a $100 million investment in a Series E round led by Singapore-based ABC World Asia.

According to Tracxn, the company has received a total of $328 million in funding across 20 funding rounds.In 2022, it acquired Deeksha (Ace Creative Learning), a Karnataka-based test prep platform, for about $40 million to fuel Vedantu's offline operations.