SUMMARY
- Cuemath reported a 4.9% increase in operating revenue to Rs 126.4 crore in FY24.
- It managed to cut its expenses by 29.9%, reaching Rs 360.4 crore in FY24.
- Cuemath reduced its losses to Rs 134.5 crore in FY24.
Edtech Cuemath saw a significant drop in losses by over a third in FY24, while its revenue only slightly increased YoY.
The company reported an increase in operating revenue to Rs 126.4 crore in FY24, a 4.9% rise from Rs 120.5 crore in FY23.
Based on its financial reports, the Peak XV-backed edtech managed to cut its expenses by 29.9%, reaching Rs 360.4 crore in FY24 from the Rs 252.6 crore spent in FY23.
This reduction in expenses allowed Cuemath to greatly reduce its losses to Rs 134.5 crore in FY24, a 42.7% drop from the losses of Rs 234.7 crore in FY23.
Manan Khurma-led Cuemath, which primarily earns revenue from teaching services with additional income from franchise fees and teacher recruitment, saw its total revenue grow by 4.6% annually, including interest from its investments.
Established in 2013 by Manan Khurma and Jagjit Khurma, the Bengaluru-based edtech focuses on providing online math learning programs for students from kindergarten to class 12.
The decrease in losses is mainly attributed to lower spending on employee benefits, which, despite being the firm’s second-largest expense, fell by 34.2% to Rs 114.2 crore. This includes Rs 2.8 crore in costs related to the employee stock option scheme (ESOP) and employee stock purchase plan, showing a decrease of 89.7% from the Rs 27.2 crore spent in the year before.
In a tough market for K-12 edtechs, the Alpha Wave Global-backed learning platform has also made several rounds of job cuts. Additionally, as part of its strategy to cut costs, Cuemath has reduced its expenses on advertising and promotions by more than half, reaching Rs 24.1 crore in FY24 compared to the Rs 55.1 crore spent in FY23.
The edtech has secured a total of $126 million in funding over nine rounds. In June 2022, it secured $57 million in a round led by Alpha Wave Global, valuing the company at $407 million. The edtech sector is currently facing difficulties, marked by a decline in investor interest and a decrease in demand for online learning following the pandemic.
