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Peak XV-backed edtech startup Cuemath reduced its losses by more than a third in the financial year 2023-24 (FY24) while its revenue grew marginally compared to the last fiscal.

According to its consolidated financial statements, the edtech firm’s expenses dropped by 29.9%, down to Rs 360.4 crore in FY24, compared to Rs 252.6 crore in FY23.

Cuemath’s reduction in expenses enabled it to substantially narrow its losses to Rs 134.5 crore in FY24, down 42.7% from Rs 234.7 crore incurred in the previous financial year.

The Manan Khurma-led firm reported an operating revenue of Rs 126.4 crore in FY24, a 4.9% increase from the Rs 120.5 crore in the previous fiscal year.

Cuemath—which generates most of its revenue from teaching, with the remaining coming as franchisee and teachers onboarding fees—clocked a total revenue of Rs 131.9 crore, up 4.6% annually, including interest income from current investments. 

Founded in 2013 by Khurma and Jagjit Khurma, the Bengaluru-based edtech offers mathematics-focused online learning programmes for K-12 (kindergarten to class 12) students. 

The narrowing of losses is primarily due to reduced spending on employee benefits, which, despite being the firm’s second-largest expense category, fell to Rs 114.2 crore—a 34.2% year-on-year decrease. It includes Rs 2.8 crore in costs related to the employee stock option scheme (ESOP) and employee stock purchase plan, down 89.7% from Rs 27.2 crore in the previous year.

Amid a challenging environment for K-12 edtech firms, the Peak XV Partners and Alpha Wave Global-backed learning platform has reduced its workforce with multiple rounds of job cuts.

Moreover, as part of its cost-cutting measures, Cuemath reduced its advertising and promotional expenses by more than half, totalling Rs 24.1 crore in FY24 compared with Rs 55.1 crore in FY23.

The math learning startup has raised a total funding of $126 million over nine rounds, according to Tracxn. In June 2022, it raised $57 million in a round led by Alpha Wave Global at a valuation of $407 million.

The edtech industry is facing a challenging time, marked by waning investor interest and reduced demand for online learning in the aftermath of the pandemic.