Edtech unicorn Vedantu reported moderate revenue growth but widening losses in the financial year ended March 2025 (FY25), as higher employee and operating costs continued to weigh on profitability.
According to consolidated financial statements filed with the Registrar of Companies (RoC), Vedantu’s revenue from operations rose 23% year-on-year to ₹227 crore, compared with ₹185 crore in FY24. However, loss before tax increased 25% to ₹210 crore, up from ₹168.5 crore in the previous year.
Revenue Mix
Vedantu’s business remains heavily skewed towards online education.
- Online tutoring contributed 87% of operating revenue, rising 19% to ₹197 crore from ₹166 crore in FY24
- Book sales more than doubled to ₹22 crore
- The remaining revenue came from hostel fees and e-learning projects, reflecting the company’s recent foray into offline and hybrid models
Vedantu offers online classes for Grades 6–12, along with study material for Grades 1–12 and JEE preparation, and has also launched offline coaching centres over the past few years.
Expenses Continue to Climb
On the cost side, employee benefit expenses remained the largest cost head, accounting for 49% of total expenditure. This expense rose 24% to ₹219 crore in FY25 from ₹176 crore a year earlier.
Other key cost components included:
- Advertising expenses, up 17% to ₹27 crore
- Depreciation, which increased to ₹69 crore from ₹58 crore
Overall, total expenses rose 21% to ₹444 crore, compared with ₹368 crore in FY24.
Exceptional Income Softens Net Loss
Vedantu reported exceptional non-cash income of ₹77 crore during FY25, linked to a fair value adjustment related to Ace Creative Learning (Deeksha), in which the company holds a call option.
Including this exceptional item, net loss narrowed to ₹123 crore. Excluding it, underlying losses remained elevated, reflecting ongoing pressure on unit economics.
The company’s EBITDA margin stood at -61.23%, while ROCE was -92.86%. On a unit basis, Vedantu spent ₹1.96 to earn every rupee of operating revenue during the year.
Liquidity and Funding
As of March 2025, Vedantu reported cash and bank balances of ₹40 crore, with current assets of ₹101 crore.
According to startup intelligence data, the company has raised $348 million in funding to date from investors including Tiger Global, Coatue, Accel and Omidyar Network.
Why It Matters
Vedantu’s FY25 performance reflects the structural challenges facing large edtech platforms, as growth normalises and cost structures remain heavy. The company’s ability to rein in expenses, improve unit economics and stabilise cash flows will be critical as investor focus shifts firmly from scale to sustainability.
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