Eupheus Learning Scales Revenue in Edtech Market, Seeks Path to Profitability

Preeti Bali / 2:13 pm / March 20, 2024

Educational technology firm Eupheus Learning stands out for its impressive revenue growth in a competitive market. The company has quadrupled in size over the past two fiscal years, reaching Rs 99 crore ($12.1 million) in FY23, compared to Rs 23 crore ($2.8 million) in FY21.

This translates to a 45.6% year-over-year (YoY) increase in operational revenue for FY23, reaching Rs 99 crore from Rs 68 crore in the previous year, as per their financial statements filed with the Registrar of Companies.

Printed Perfection: The FY23 Revenue Milestone for Eupheus Learning

Eupheus Learning offers a combination of digital curriculum and supplementary materials for schools, with a strong focus on printed books. In fact, sales of printed books accounted for a significant 95% of their total operating revenue in FY23, with a notable 94.9% increase to Rs 94 crore.

The company strategically expanded its offerings in 2021 through the acquisition of ClassKlap, a platform that helps schools manage administrative and academic operations. The remaining 5% of revenue comes from the sale of digital products.

Eupheus Learning’s FY23 Financial Performance: Managing the Bottom Line

While scaling revenue, Eupheus Learning has also managed to slightly reduce its losses, which stood at Rs 20 crore in FY23. There’s also improvement in key financial metrics like Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin, reaching -14% and -10.6% respectively. However, the company still spends Rs 1.27 for every Rs 1 earned, indicating a path towards profitability is needed.

Eupheus Learning’s last funding round was a $10 million Series C round led by Lightrock India in September 2021. Current ownership data suggests Sixth Sense India holds the largest stake at 31.82%, followed by Lightrock at 16.18%.

The improved financial performance strengthens Eupheus Learning’s position, but questions remain about securing a new funding round at the same or higher valuation as 2021. Simply reducing its burn rate might not be enough in this competitive landscape. While scaling inevitably comes with increased costs, especially in sales and marketing, Eupheus Learning must prioritize achieving sustainable financial health alongside its impressive revenue growth. The company’s strong market fit is evident, but the journey towards long-term profitability requires a clear strategy.

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