-backed math learning startup posted a loss of Rs 216.6 crore in FY22 against losses amounting to Rs 130.7 crore in the financial year 2020-21.
This comes on the back of the Bengaluru-based company spending Rs 125 crore on employee benefits—its largest expense—according to its recent financial statements.
The edtech firm’s overall expenditure went up 39% to Rs 369 crore in FY22 from Rs 224 crore in FY21. Its advertising and promotion expenses grew 15.6% to Rs 96.5 crore. In addition, the company’s legal professional charges rose sharply to Rs 98.7 crore in FY22, up 55.8% from the year prior.
The startup reported total revenue of Rs 152.9 crore in FY22—a 38.8% increase compared to the previous fiscal. Its revenue from operations increased to Rs 148 crore in FY22 from Rs 91 crore in FY21.
Founded in 2013, the Bengaluru-based online math learning platform is present in more than 70 countries. The startup aims to expand to over 100 countries by FY23. This plan includes bolstering its presence in North America, APAC, the UK, Europe, Middle East, and capturing markets in Africa and South America.
The math learning startup has raised a total funding of $126 million over nine rounds, according to Tracxn. In February 2022, it raised $57 million in a round led by Alpha Wave Global at a valuation of $407 million, a more than 2X jump in its valuation.
Just like Cuemath, other edtech firms are witnessing losses, slowing expansion plans, and trying to burn as little cash as possible.
The edtech sector has been in turmoil after a period of intensive pandemic-driven boom. The pandemic offered tailwinds for tremendous growth, but the resumption of offline classes, combined with a funding winter, have hit the edtech firms hard.
Edtech unicorns such as Tiger Global-backed Unacademy reported a loss of Rs 2,848 crore in FY22. BYJU’S, which is yet to file its FY22 numbers, reported Rs 4,588 crore loss in FY21, while upGrad witnessed a loss of Rs 627 crore in the last fiscal.
PhysicsWallah was the only profitable firm among edtech unicorns. Its net profit for the financial year 2021-22 was Rs 97.8 crore—up 14-fold from Rs 6.93 crore in the year-ago period.
