Educational technology startup Plus class has demonstrated remarkable financial growth in FY24, doubling its revenue to Rs 213 crore, up from Rs 102 crore in the previous fiscal year.
Classplus primarily supports creators in launching their online coaching businesses by providing them with mobile apps and customized websites to sell online courses.
The startup’s operating income was largely generated through SaaS tools and software sales (96.6%, or Rs 205.5 million), while Rs 8 million came from sales of related products and services.
Additional income and strategic investments
Classplus reported a total revenue of Rs 264 crore for FY24, driven by an additional Rs 52 crore earned primarily from interest on fixed deposits. Along with its growing revenue streams, the startup has been making strategic investments.
Notably, it invested in GyanLive, a government job readiness portal, and launched the Polaris School of Technology, which offers a four-year computer science program in Bengaluru.
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Cost management and loss reduction.
Classplus has made notable progress in cost management alongside revenue growth. The startup reduced total expenses by 7.3%, reducing its total expenditure from Rs 405.2 crore in FY23 to Rs 375.7 crore in FY24.
This reduction was driven by cost-cutting measures, including a 12% decrease in employee benefits, which accounted for 54% of total expenses, and a 7.3% cut in advertising and promotion costs.
Employee benefits for FY24 amounted to Rs 201.7 million, including Rs 38.5 million in non-cash ESOP costs. These efforts contributed to a 57% reduction in net losses, which fell to Rs 110.4 crore in FY24 from Rs 256 crore the previous year.
Classplus has reportedly raised around $160 million in funds to date. Tiger Global, Alpha Wave, RTP Global, Blume Ventures and GSV Ventures are some of its notable investors.
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