Eruditus’ FY22 revenues jump by 87% but losses balloon to Rs 2,195 crore

Edtech company Eruditus’s revenues jumped by around 87 per cent in FY22 according to its latest financial statements. The company’s revenues stood at $245.2 million in FY22 compared to $131.1 million in FY21. 

However, its expenses also jumped by more than half to reach $63 million in FY22 from $39 million in FY21. 

Started in 2010 by Ashwin Damera and Chaitanya Kalipatnapu, Eruditus works with top international universities and offers more than 100 executive-level courses to students spread across 80 nations. Some of the institutes that Eruditus has partnered with are MIT, Harvard, Columbia, Cambridge, INSEAD, Wharton, UC Berkeley, IITs, IIMs and NUS. The price of these courses can range from $5,000 to $40,000.
 
The edtech company claims that 35 per cent of its users are from the US while 20 per cent from India. The remaining come from Latin America, Europe and other areas.

With this, Eruditus has become the second largest edtech company in terms of scale after Byju Raveendran-led BYJU’S. BYJU’S is yet to file its FY22 results but according to its FY21 results, the edtech giant clocked revenues of Rs 2,428 crore while its losses widened considerably to reach Rs 4,588 crore. In a recent development, the company’s value was also slashed by nearly half to $11.5 billion by its investor, BlackRock.
 
Comparatively, Eruditus’ revenues (in INR) stand at Rs 1,848 crore, its losses also ballooned to Rs 2,915.4 crore or $368 million for the above-mentioned fiscal year.
 
It is also important to note that it is not just BYJU’S or Eruditus that have reported wide-spread losses within the edtech space. Mumbai-based upGrad which is backed by Ronnie Screwvala reported a loss of Rs 626 crore against a revenue of Rs 519.9 crore in FY22.
 
In addition, Bengaluru-based Unacademy, which was recently in news for laying off 12 per cent of its workforce, reported a loss of Rs 2,848 crore in FY22 (which is an 85 per cent year-on-year increase. In FY21, the losses stood at Rs 1,537 crore. 
 
Similarly, Vamsi Krishna’s edtech firm Vedantu also posted a loss of Rs 696 crore. Its revenues stood at Rs 169 crore in FY22.

The edtech sector has been experiencing turbulence for sometime now. Apart from reporting losses, players in this space are also combating the on-going challenges such as layoffs and funding crunch.

Also Read: ‘Funding winter will get worse before it gets better,’ says Bain Capital’s Amit Chandra