Bengaluru-based online tutoring platform Vedantu Innovations has widened its losses for the financial year 2019-2020 (FY20) to Rs 158.5 crore, against Rs 27 crore in FY19.
The company’s expenses during the year bloated 5X with employee benefits at Rs 88 crore accounting for nearly half of the total expenses. The company spent about Rs 30 crore on advertising and promotion in FY20, regulatory filings showed.
Vedantu spent a total of Rs 194.3 crore and earned operating revenues of Rs 24.6 crore in FY20. The operating revenues made up about 69% of Vedantu’s total revenues in FY20.
Revenues from returns on fixed deposits and other investments were at Rs 11.2 crore.
Total revenues for FY20 stood at Rs 35.8 crore against Rs 12.4 crore in FY19.
Founded in 2011 by Vamsi Krishna, Anand Prakash, Pulkit Jain and Saurabh Saxena, Vedantu claims to have over 25 million monthly users across 1,000 cities around the world.
The company is riding the edtech wave induced by the Covid-19 pandemic and earlier this week, it acquired Instasolv to boost its doubt-clearance capabilities and increase its presence in tier-II and tier-III markets.
In July 2020, it raised $100 million in a growth round.The investment came some three months after the platform secured $13 million in an extended Series C round from Chinese venture capital firm Legend Capital, existing investor Omidyar Network and others.