The last fiscal year (FY21) was fantastic for Indian edtech companies, as their usage skyrocketed due to the pandemic. As a result, edtech startups raised record amounts of money while increasing their revenue by multiples. Toppr (now a part of Byju’s) stood out as an outlier. In FY21, the company’s revenue fell by 40%.
Toppr, which has been in business for eight years, is comprised of two companies: Toppr, which provides a learning platform for students, and Haygot Services, which acts as a support service provider, facilitating educators for the company. According to the company’s annual financial statement filed with the RoC, Toppr’s revenue from operations fell by 40% during the fiscal year ending March 2021, to Rs 50.6 crore from Rs 84.32 crore in FY20.
Moving on to the expenses sheet, we discovered that the employee benefit expense was the company’s largest cost centre, accounting for 61 percent of the annual costs. In addition, from Rs 115.5 crore in FY20 to Rs 109.31 crore in FY21, these payments fell by 5.3 percent to Rs 109.31 crore.
Advertising and marketing expenses were the second largest line item on the expense sheet, accounting for 8.7 percent of annual costs and remaining stable at around Rs 15.56 crore in FY21. Interestingly, Toppr’s server maintenance and SaaS costs increased by nearly 94 percent to Rs 12.2 crore in FY21, compared to Rs 6.3 crore in FY20, despite a 40% reduction in scale.
Moreover, during FY21, Toppr spent Rs 12.22 crore and Rs 3.81 crore on legal professional costs and recruitment, respectively. Overall, the company spent Rs 179.2 crore in FY21, which is 12% less than the Rs 203.7 crore spent in FY20.
Toppr is now a part of Byju’s after being acquired for $150 million by the country’s most valuable startup.
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