Edtech startup BrightCHAMPS, which offers certificate courses for kids in the 6-16 age group, has reported a standalone loss of INR 98.7 crore ($13.3 million) for financial year 2021-22, a 28x YoY rise due to a sharp increase in expenses. The operating revenue of the Goa-based company rose 11.3x to INR 22.5 crore from INR 2 crore in the previous year. Employee benefit expenses accounted for the biggest chunk of expenditure, rising 37x to INR 55.5 crore. Advertising and marketing expenses also surged over 20x to INR 42.4 crore, while the startup spent around INR 16.8 crore on legal professional charges. BrightCHAMPS earned INR 5 crore from Indonesia in FY22, with India contributing only INR 46.5 lakh to its total operating revenue. BrightCHAMPS had announced during its last funding round in November 2021 that it would further expand its team across various departments, such as product, growth, technology, content, sales, operations, marketing, and business development. This announcement was made after the company had raised $63 Mn in the funding round, which was led by Premji Invest, GSV Ventures, 021 Capital, Beenext, and Binny Bansal, at a valuation of $500 Mn.
The edtech sector in India has been facing challenges due to the funding winter and sectoral downturn. Many startups are struggling with mounting losses, and this trend seems to be continuing. For example, Eruditus, a startup offering executive education courses, reported a 46% YoY rise in consolidated net loss to $386.8 Mn in FY22. Unacademy, another major player in the space, saw its losses widen by 85% YoY to INR 2,848 Cr. Similarly, Vedantu, a unicorn in the Indian edtech market, reported a widening of its loss to INR 696.2 Cr in the year from INR 616.2 Cr in FY21.