Eruditus posts ₹3,733 crore revenue FY24 ,EBITDA loss by 83%

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Global edtech firm Eruditus recorded a 12% revenue growth in FY24, reaching ₹3,733 crore, compared to ₹3,322 crore in the previous year. The Mumbai-based company significantly reduced its EBITDA losses by 83%, from ₹417 crore in FY23 to ₹69 crore in FY24. This performance solidifies Eruditus’ position as a leading player in India’s edtech sector, surpassing competitors like PhysicsWallah (₹2,015 crore revenue) and upGrad (₹1,487 crore revenue) in the same period.

A major reason for Eruditus’ improved financials was its cost optimization strategies. The company lowered marketing expenses to ₹1,007 crore (from ₹1,241 crore in FY23) and cut operational expenses to ₹1,045 crore (from ₹1,541 crore in FY23). Additionally, Eruditus plans to defer ₹800 crore in revenue to FY25 and aims to hit $520-$530 million (₹4,330-₹4,420 crore) in FY25.

Founded by Ashwin Damera and Chaitanya Kalipatnapu, Eruditus offers executive education programs in partnership with over 80 top universities worldwide. The company has raised over $1 billion in equity and debt funding from investors like SoftBank, Accel, and Prosus Ventures. Looking ahead, Eruditus is targeting $1 billion in revenue within five years.

1. Understanding Eruditus’ Business Model

1.1 How Eruditus Works

Eruditus is a global edtech firm focused on executive education and higher learning programs. The company partners with renowned universities across the United States, Europe, Latin America, Southeast Asia, India, and China to offer online and offline courses tailored for working professionals.

2. Revenue Model and Growth Strategies

2.1 Revenue Streams

Eruditus generates revenue through:

1. Certificate Programs: Executive courses in collaboration with global universities.
2. Degree Programs: Online master’s and diploma courses for professionals.
3. Corporate Training: Tailored learning solutions for enterprises.
4. Hybrid Learning: A mix of online and in-person programs.

3. Financial Performance in FY24

3.1 Eruditus Revenue FY24

Eruditus recorded a 12% YoY revenue increase, reaching ₹3,733 crore in FY24. The firm’s growth was driven by expanding its global reach, new university partnerships, and rising demand for online education.

3.2 EBITDA Loss Reduction

Eruditus slashed its EBITDA losses by 83%, from ₹417 crore in FY23 to ₹69 crore in FY24. The company achieved this through cost-cutting measures and streamlined operations.

3.3 Expense Optimization

1. Marketing Costs: Reduced from ₹1,241 crore (FY23) to ₹1,007 crore (FY24).
2. Operational Costs: Lowered from ₹1,541 crore (FY23) to ₹1,045 crore (FY24).
3. Marketing-to-Revenue Ratio: Dropped from 29% to 27%.
4. Operating Expenses Ratio: Reduced from 36% to 28%.

4. Future Outlook and Expansion Plans

4.1 Revenue Projection for FY25

1. Deferred Revenue: ₹800 crore will be recognized in FY25.
2. Projected Revenue: Aiming for $520-$530 million (₹4,330-₹4,420 crore) in FY25.

4.2 Long-Term Goals

CEO Ashwin Damera has set a vision for Eruditus to cross $1 billion in revenue within five years. The company plans to expand course offerings, strengthen partnerships, and enhance AI-driven learning platforms.

5. Learning for Startups and Entrepreneurs

5.1 Key Takeaways

1. Cost Optimization is Crucial: Strategic cost-cutting can significantly improve profitability.
2. Global Expansion Works: Targeting multiple markets can diversify revenue sources.
3. Partnerships Drive Growth: Collaborating with established institutions builds credibility.
4. Long-Term Vision Matters: Setting ambitious goals helps in sustained business growth.

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