Edtech Unicorn Eruditus FY22 Net Loss Widens To $386 Mn

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Eruditus, a Singapore-based Indian edtech startup, reported a consolidated net loss of $386.8 million in the year ended June 30, 2022 (FY22), a 46% increase from the previous fiscal year. The company’s operating revenue increased 1.8 times to $245.2 million in FY22 from $131.2 million in FY21. Eruditus provides executive education programs in collaboration with global business schools and earns most of its revenue from educational services.

The company’s marketing expenses more than doubled during the year, surging 2.1 times to $141.6 million in FY22 from $67.1 million in FY21. Eruditus laid off 40 employees in June 2022, and other Indian edtech startups such as BYJU’S, Vedantu, and Unacademy are also struggling with mounting losses. Eruditus raised $350 million in debt financing from the Canada Pension Plan Investment Board (CPPIB) in March 2022 to increase its acquisition plans in foreign markets. However, the edtech industry has been facing a funding winter and downturn, leading to many startups in the sector laying off almost 9,000 employees since last year.

Eruditus itself laid off 40 employees in June 2022. A majority of the edtech startups, including BYJU’S, Vedantu, and Unacademy, have also been struggling due to mounting losses. While BYJU’S is yet to file its financial statements for FY22, its FY21 loss widened almost 20X to INR 4,588 Cr against sales revenue of INR 2,280 Cr. According to the article, a majority of the edtech startups, including BYJU’S, Vedantu, and Unacademy, have been struggling due to mounting losses. While BYJU’S has not yet filed its financial statements for FY22, its FY21 loss widened almost 20 times to INR 4,588 crore against sales revenue of INR 2,280 crore.