Edtech unicorn Vedantu has reported its first profitable quarter in Q4FY25, marking a significant turnaround for the Bengaluru-based startup. The milestone, driven by a 67% year-on-year surge in collections to ₹90 crore, was announced by Co-founder and CEO Vamsi Krishna on Thursday following the company&rsquo;s board meeting.
&ldquo;Q4 was our strongest quarter ever... and this wasn&rsquo;t even our peak quarter, which puts us on a clear trajectory for a cash flow-positive FY26,&rdquo; Krishna wrote in a LinkedIn post. Vedantu also reported over ₹6 crore in free cash flow during the quarter.
The company closed FY25 with total collections of ₹284 crore, a 55% increase from the previous fiscal. Additionally, it reduced its annual cash burn by 30% to ₹70 crore. Vedantu&rsquo;s online business grew 33% over the fiscal year, with growth accelerating to 70% in the last two quarters&mdash;contradicting the prevailing notion that K12 edtech is losing relevance post-COVID.
Founded in 2011 by Vamsi Krishna, Anand Prakash, Saurabh Saxena, and Pulkit Jain, Vedantu offers online tutoring for school students and achieved unicorn status in 2021 after raising $100 million from Temasek-backed ABC World Asia. In recent years, the firm has diversified into offline learning with coaching centers across multiple cities.
Vedantu&rsquo;s recent performance stands in stark contrast to its earlier financial struggles. After posting a net loss of ₹696 crore in FY22, it slashed losses by 46.4% in FY23 to ₹373 crore. In FY24, losses were reduced further by 58% to ₹157 crore, alongside a 21% increase in revenue to ₹185 crore. FY25 financials are yet to be filed with the Registrar of Companies.
In a sector plagued by post-pandemic challenges&mdash;including mass layoffs, valuation corrections, and governance issues at major players like Byju&rsquo;s&mdash;Vedantu&rsquo;s profitability is a rare positive signal.
Krishna pushed back against the pessimism surrounding edtech, noting that Vedantu has achieved a 10x growth in five years with a ~50% annual compounding rate. &ldquo;We&rsquo;re already profitable from a run-rate perspective,&rdquo; he stated, emphasizing that online learning remains the cornerstone of the company&rsquo;s strategy.
While India&rsquo;s edtech funding dropped sharply after peaking at $2.1 billion in 2022, it has shown signs of revival in 2024, with investments climbing to $608 million&mdash;nearly triple the amount raised in 2023, according to Venture Intelligence data.
Krishna remains optimistic about the sector&rsquo;s future, stressing that companies focused on student outcomes, sustainability, and strong execution are well-positioned to thrive. &ldquo;This sector is undervalued right now, making it a prime opportunity for builders and investors,&rdquo; he said.
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Source : Indian Startup News

Edtech unicorn Vedantu has reported its first profitable quarter in Q4FY25, marking a significant turnaround for the Bengaluru-based startup.

Vedantu Posts First-Ever Profitable Quarter in Q4FY25, Signals Strong Turnaround in Edtech Sector