The employee benefit expenses of the Tiger Global-backed startup jumped 4.6 times to Rs 407.4 crore in FY11 as against Rs 88.3 crore in FY10, according to a filing obtained from business intelligence platform Toffler.
The total expenditure grew 4 times to Rs 736.1 crore in FY2011.
employee expenses Typically includes gross employee pay, incentive compensation, commission, sick pay, arrears, pension and retirement payments.
The company’s consolidated revenue from operations increased to Rs 93.6 crore from about Rs 24.6 crore in FY15. The total revenue in FY 2011 stood at Rs 134.9 crore.
India’s edtech firms are seeing a drop in demand as offline centers reopen.
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With global macroeconomic factors influencing fundraising on startups, several large edtech firms including Vedantu and Unacademy Measures have been taken to cut costs including layoffs.
In May, Vedantu laid off about 200 full-time and contract employees, as the company wanted to increase its capital runway. Subsequently, in the same month, the company laid off another 424 contractual and full-time employees, amid falling demand for online education.
In a blog post, Vamsi Krishna, founder and CEO of Vedantu, said that the company will also take cost-cutting measures. He said the growth experienced during the peak period of the COVID-19 pandemic would not be repeated in future.
“The over-growth of 9 times Vedanta experienced during the last 2 years will also moderate. For the long term sustenance of the mission, V (Vedantu) will also need to be optimized,” he said.
Krishna also said that the external environment and inflationary pressures will make it difficult to raise funds.
“At present, the external environment is tough. The war in Europe, fears of an impending recession, and a hike in Fed interest rates have given rise to inflationary pressures, with stocks improving globally and in India as well. Given this environment, capital will be scarce for the coming quarters,” he said.
Unacademy founder Gaurav Munjal had earlier warned employees of a ‘funding winter’ in May.
“But now we have to change our ways. Winter has arrived. Tech stocks globally are crashing and burning due to tight monetary policies and rising interest rates. We are looking at a time where at least 12-18 months Funding for
Companies are considering opening offline centers. Edtech unicorns including Byju’s and Vedantu have established or are looking to set up more offline centres.
“We are focused on reducing the cost of courses to manage the dwindling demand for online education, as offline learning centers open up. We are also in the early stages of setting up offline centres,” Vedantu K Krishna had said earlier.