Classplus revenue spikes 2X to Rs 260 Cr in FY24; cuts losses by 57%

While many edtech posterboys experienced flat or no growth in FY24, edtech firm Classplus seems to have found stable revenue streams by empowering educators with an online presence. The Tiger Global-backed company saw its revenue grow eight-fold over the past two fiscal years, reaching Rs 213 crore in FY24, up from Rs 26 crore in FY22. At the same time, the firm reduced its losses by 57% in FY24.

Classplus’s revenue from operations surged 2X to Rs 213 crore in FY24 from Rs 102 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.

Classplus helps creators launch their online coaching business by launching their mobile apps and websites and sell online courses via them. The sale of SaaS tools and software accounted for 96.6% of its total operating revenue, which doubled to Rs 205.5 crore in FY24.

The sale of products and other allied services contributed Rs 8 crore to its revenue. Additionally, the company earned Rs 52 crore, primarily from interest on fixed deposits, bringing its total income to Rs 264 crore in the fiscal year ending March 2024. It has also invested in companies like govt job-prep portal GyanLive and recently started a four year computer science course — Polaris School of Technology in Bangalore.

Revenue Breakdown

Total ₹ 102.04 Cr
Total ₹ 212.6 Cr
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For the six-year-old firm, employee benefits accounted for 54% of total expenses, decreasing by 12% to Rs 201.7 crore in FY24. This includes Rs 38.5 crore as ESOP cost which is non-cash in nature. Advertising and promotional expenses also saw a 7.3% decline in the last fiscal year.

Legal and professional, information technology and depreciation were additional expenses that brought the overall expenditure down to Rs 375.7 crore in FY24, compared to Rs 405.2 crore in FY23.

Expenses Breakdown

Total ₹ 405.2 Cr
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Total ₹ 375.7 Cr
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• Employee Benefit
• Depreciation
• IT Expense
• Legal professional Charges
• Advertising promotional expense
• Other Expense

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The two-fold growth and controlled expenditures helped Classplus reduce its losses by 57%, bringing them down to Rs 110.4 crore in FY24 from Rs 256 crore in FY23. Its Return on Capital Employed (ROCE) and EBITDA margin improved to -15.26% and -35.99%, respectively. On a per-unit basis, the company spent Rs 1.77 to earn a rupee in FY24.

FY23-FY24

The Noida-based company has raised over $160 million to date, including a $70 million Series D round in March 2022, which valued the company at $600 million. Its other notable investors include Tiger Global, Alpha Wave, RTP Global, Blume Ventures, and GSV Ventures.

With enough dry powder to last at least another two years or more, especially if its cost controls continue to succeed at reducing losses, Classplus could be in a very good space by FY25. The offering is not as sensitive to the vagaries of the economy and as the universe of beneficiaries grows, even marketing expenses or acquisition costs will drop, if service is good. The company is also going to be building a deeper moat with higher numbers, securing its position better. At Rs 12,000 per annum or thereabouts on average for a ‘teacherpreneur’, disruptors will not find it easy to offer more for less.