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upGrad Posts Rs 1,876 Cr Gross Revenue in FY24, EBITDA Losses Down by 50%

upGrad, the Mumbai-based online education and skilling platform, has reported a significant improvement in its financials for the fiscal year 2024. With a gross revenue of Rs 1,876 crore, the company is charting a clear path towards stronger growth, narrowing down its EBITDA losses by 50%.

The company, which offers a wide range of online learning programs, including certifications, bootcamps, and degree courses, has seen impressive growth despite the challenges of the education sector. Its fiscal report for FY24 highlights a considerable reduction in losses, signaling both operational efficiency and a strong market position.

Revenue Growth and Financial Adjustments

In FY24, upGrad posted a gross revenue of Rs 1,876 crore, a remarkable figure for an ed-tech company that has risen to prominence since its inception in 2015. However, after adjustments under Ind-AS accounting standards, the company’s total income stood at Rs 1,547 crore.

The difference arises from unrecognized but collected advance revenue, which amounted to Rs 507 crore. These figures are part of upGrad’s ongoing effort to standardize its financial reporting, providing a clearer picture of its actual performance.

upGrad company revenue growth

Despite the revenue growth, the company had to address the issue of EBITDA losses, a common challenge for fast-growing startups. For FY24, the Ind-AS EBITDA loss, excluding one-time costs, was pegged at Rs 202 crore. This marks a significant improvement from the Rs 558 crore loss recorded in the previous fiscal year. Including one-time costs, upGrad narrowed its EBITDA losses by 50%, bringing them down to Rs 285 crore from Rs 558 crore in FY23.

The company’s net loss for FY24 was Rs 560 crore, a 50.6% reduction from the previous year, where losses totaled Rs 1,142 crore. Notably, Rs 243 crore of these losses were non-cash items, which helped the company adjust its financial strategy going forward.

Efficient Cost Management Amid Growth

One of the most striking aspects of upGrad’s FY24 performance was its ability to control costs while expanding its operations. Despite the ongoing investment in technology, product development, and employee benefits, the company managed to keep cost increases modest. Marketing and delivery costs saw slight increases, but upGrad’s efficient operations allowed it to navigate these without significantly impacting profitability.

Mayank Kumar, Co-founder of upGrad, pointed out that FY24 was a year of consolidation for the company. “We integrated core business operations and entities to drive efficient and scalable outcomes,” he said. Kumar expressed confidence in FY25, highlighting the company’s strong capital position, zero net debt, and a solid return on capital employed (ROCE).

The company also emphasized its focus on maintaining strong growth and improving profitability. “We are tracking FY25 very closely and expect stronger growth and profitability,” he added, underlining the company’s optimistic outlook.

Growth in Learner Enrollments and Enterprise Business

A key area of growth for upGrad has been in its learner enrollments, particularly in the consumer segment. The company reported a 50% year-on-year increase in enrollments, with more than 55,000 career transitions facilitated for the second year in a row. This includes a diverse range of industries such as marketing, data, and technology, with placements primarily in major cities like Mumbai, New Delhi, Bengaluru, and Chennai.

Interestingly, upGrad’s AI and technology courses alone accounted for 20% of the total revenue. This indicates a clear trend toward learners opting for in-demand skills, especially in the tech space, which is seeing a surge in interest from both individuals and enterprises alike.

On the enterprise side, upGrad’s business grew by almost 50% in terms of clientele during FY24. The company continued to attract major partners across diverse sectors, including GCCs, automobiles, ITes, BFSI, manufacturing, and services. This diversified client base provides upGrad with a solid foundation for its future growth and success.

Funding and Market Position

UpGrad’s successful fundraising efforts also contribute to its promising financial future. In October 2024, the company raised $60 million from Temasek, bringing its valuation to $2.25 billion. The funding brings upGrad’s total capital raised to over $320 million to date.

Temasek now holds a 20.5% stake in the company, making it the largest external stakeholder. UpGrad’s co-founder and chairperson, Ronnie Screwvala, along with his family, maintains a 45% ownership stake. This backing from a global investor like Temasek provides upGrad with the resources it needs to continue its growth trajectory.

Eruditus, a competitor in the upskilling and higher education space, raised $150 million in its Series F round in October. This shows the competitive landscape within the sector and the ability of both companies to attract substantial investment.

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