Ever since the world started adapting to the online mode of pretty much everything, the education business has been on the upward graph. People prefer to upskill themselves through online courses and classes.
A lot of education platforms have seen a massive increase in their business since then, right from Byju’s to Udemy.
However, Eruditus is the one winning the race!
Eruditus has become India’s second-largest revenue-grossing ed-tech startup.
Eruditus Becomes India’s Second Largest Ed-tech Startup in Terms Of Revenue
Eruditus, a platform for higher education and upskilling, is now India’s second-largest revenue-generating ed-tech startup after the SoftBank-backed business produced about $250 million in operating revenue in FY22 (2021-22).
Due to its Singaporean incorporation, Eruditus has a financial year that runs from July to June.
For the fiscal year that concluded in June 2022, it generated operating revenue of $245.25 million (or around Rs 1,850 crore), up 86 percent over the prior year’s operating revenue of $131.19 million (or about Rs 988.8 crore).
Byju, which has yet to submit its FY22 (Apr-Mar) results but had revenue of about Rs 2,500 crore in FY21, is now just behind the SoftBank-backed unicorn by this amount (Apr-Mar).
The operating revenue of the other four direct-to-consumer ed-tech unicorns that have submitted results for FY22 together is likewise more than that of Eruditus.
UpGrad by Ronnie Screwvala, Unacademy funded by SoftBank, Vedantu supported by Tiger Global, and PhysicsWallah, the newest unicorn in India, with combined revenues of Rs 1,800 crore.
Eruditus’ Losses Increase to $66 Million
Eruditus’ losses have seen a hike too. Eruditus’s loss increased to $66 million in FY22 on a cash basis.
According to International Financial Reporting Standards (IFRS), Eruditus’ losses increased from $265 million in FY21 to $383 million in FY22; however, this figure included $241 million in non-cash exceptional items, including $92 million in goodwill impairment and $149 million in ESOP (employee stock option plan) provisions, and it excluded $77 million in revenue that was collected but not recorded in the fiscal, according to the company’s founder and CEO Ashwin Damera.
Eruditus (Emeritus), a platform that offers executive-level programmes for working professionals, was founded in 2010 by Kalipatnapu and Damera. To date, the company has raised a little more than $814 million in equity capital from a number of investors, including SoftBank, Prosus, Sequoia, Chan Zuckerberg Initiative, and GSV Ventures. The business raised $650 million in August 2021, the largest round it has ever completed at a valuation of more than $3.2 billion.
