SUMMARY
- Classplus experienced a surge in its revenue over the last two fiscal years, growing 8X to reach Rs 213 crore in FY24.
- There was a 57% reduction in losses, dropping to Rs 110.4 crore in FY24.
- The overall expenditure, which fell to Rs 375.7 crore in FY24 from Rs 405.2 crore in FY23.
Tiger Global-backed Classplus experienced a surge in its revenue over the last two fiscal years, growing 8X to reach Rs 213 crore in FY24, a sharp rise from its initial revenue of Rs 26 crore in FY22. Concurrently, the firm managed to cut its losses by more than half in the same period.
The company’s operational revenue more than doubled to Rs 213 crore in FY24 from Rs 102 crore in FY23, as per its consolidated financial reports from the Registrar of Companies (RoC).
Classplus plays a key role in helping creators launch their online coaching ventures by developing their mobile applications and websites, and by selling their online courses through these platforms.
The revenue generated from selling Software as a Service (SaaS) tools and software accounted for 96.6% of its total operational revenue, which saw a significant increase to Rs 205.5 crore in FY24.
The Gurugram-based company’s revenue from product sales and related services added Rs 8 crore to its total income. Additionally, it earned Rs 52 crore, mainly from interest on fixed deposits, which took its income for the fiscal year ending March 2024 to Rs 264 crore.
The company has also made strategic investments in entities such as the government job preparation portal GyanLive and has recently initiated an offline engineering college, Polaris School of Technology in Bangalore.
For a company that has been operational for two decades, the cost of employee benefits made up 54% of its total expenses, which saw a decrease of 12% to Rs 201.7 crore in FY24.
This includes Rs 38.5 crore as expenses related to Employee Stock Ownership Plans (ESOP), which are not reflected in cash. The expenditure on advertising and promotional activities also saw a 7.3% reduction in the last fiscal year.
Legal and professional services, information technology, and depreciation were other categories of expenses that contributed to the overall expenditure, which fell to Rs 375.7 crore in FY24 from Rs 405.2 crore in FY23.
This significant growth and efficient management of expenses led to a 57% reduction in losses, dropping to Rs 110.4 crore in FY24 from the previous year’s losses of Rs 256 crore. The company’s ROCE and EBITDA margin also saw improvements, reaching -15.26% and -35.99%, respectively. On a per-unit basis, the company spent Rs 1.77 to generate a rupee in FY24.
The company has secured over $160 million in funding, including a $70 million Series D funding round in March 2022, which valued the company at $600 million. Its key investors include Tiger Global, Alpha Wave, RTP Global, Blume Ventures, and GSV Ventures.
