Edtech startup Vedantu turns profitable in Q4, closes FY25 with Rs 284 Cr in collections
The company posted Rs 90 crore in collections in the January–March quarter, up 67% year-on-year, and generated over Rs 6 crore in free cash flow (FCF).
Vedantu, the Bengaluru-based edtech platform focused on K12 education, has reported its strongest quarter to date, turning profitable in Q4 of FY25.
The company posted Rs 90 crore in collections in the January–March quarter, up 67% year-on-year, and generated over Rs 6 crore in free cash flow (FCF).
"This wasn’t even our peak quarter, which puts us on a clear trajectory for a cash flow positive FY26," said Vamsi Krishna, CEO and Co-founder of Vedantu, in a LinkedIn post following the company’s board meeting.
Vedantu closed FY25 with Rs 284 crore in collections—a 55% increase from the previous year—while simultaneously reducing its cash burn by 30% to Rs 70 crore.
While India’s edtech sector has been under scrutiny following a post-pandemic correction, Krishna pushed back on the prevailing skepticism. “The past few years have painted a bleak picture of edtech, especially K12,” he wrote. “While acknowledging the post-COVID challenges and some company setbacks, I believe the overall outlook is unfairly negative. It's time for a reality check.”
Addressing perceptions about declining online learning demand, Krishna pointed to Vedantu’s recent growth figures. “In FY25, our online business alone grew 33% YoY. In the last 2 quarters, it surged to 70% YoY,” he said. “Offline has provided a boost, but online is thriving.”
Founded in 2014, Vedantu offers live online tutoring and interactive learning solutions for students from grades 1 to 12. The company says it has seen a 10X growth in revenue since FY20, despite industry headwinds, and claims it has achieved profitability from a run-rate perspective.
“K12 education is a massive market in India. Companies that prioritise student outcomes will build enduring franchises. And right now, this sector is undervalued, making it a prime opportunity for builders and investors,” Krishna added.
Edited by Jyoti Narayan
