Teachmint Allocated INR 27 in Spending to Generate Every Rupee of Revenue in FY23

Teachmint logo

Three points you will get to know in this article:

  • Teachmint’s revenue surged in FY23.
  • However, it faced a significant net loss.
  • The startup focused on cost streamlining and received substantial funding.

Introduction to Teachmint

Teachmint is a school management software that streamlines administrative tasks such as attendance tracking, fee collections, and report card management. The software can also be used to communicate with parents and guardians, providing real-time access to information about their child’s progress. Teachmint has features such as smart reporting, analytics, and customization, making it a comprehensive solution for schools of all sizes. With Teachmint, schools can reduce errors, save time, and improve their overall efficiency.

Financial Performance

Teachmint, a Bengaluru-based educational technology startup, approached closer to the INR 200 Crore mark in net losses for the fiscal year ending on March 31, 2023. This unicorn of the edtech realm recorded a net loss of INR 180.7 Crore in the financial year 2022-23, marking a 37% surge from the INR 131.6 Crore loss incurred in the preceding fiscal year.

Established in 2020 by Mihir Gupta, Payoj Jain, Divyansh Bordia, and Anshuman Kumar, Teachmint stands as an online platform with a primary focus on video-based teaching, aiding schools in their transition towards digital classrooms.

Revenue Surge

During the reviewed year, the startup witnessed a remarkable surge in its top line, skyrocketing over 11.5 times. Supported by Lightspeed, Teachmint reported an operating revenue of INR 8.1 Crore in FY23, marking a staggering 1,057% jump from the INR 70 Lakh it earned in FY22. It’s noteworthy that FY22 marked the startup’s first full operational year since its inception in May 2020. Including supplementary income, the total revenue for FY23 reached INR 36.9 Crore, up from INR 13.4 Crore in FY22.

Expenses Breakdown

In the last fiscal year, the startup’s overall spending skyrocketed by over 50%, reaching INR 218 Crores, a substantial leap from the previous INR 145 Crores recorded in FY22.

When it comes to expenses related to employees, they took the lion’s share, constituting roughly 63% of the total expenditure. These costs surged by a staggering 88%, reaching INR 137.5 Crores in FY23 compared to INR 73 Crores in the preceding fiscal period. Notably, the startup had to part ways with approximately 115 employees across two restructuring phases within the past eighteen months, all aimed at streamlining expenses. On the IT front, Teachmints experienced a notable downturn in expenses, witnessing a 33% decrease to INR 11 Crores in FY23, down from INR 16.5 Crores in the preceding fiscal year.

Strategic Shift and Funding

In the financial realm, the startup invested INR 27 to generate each rupee from its operations during FY23. The edtech startup, which secured $78 Mn in funding back in 2021, shifted its focus from digitizing educators to digitizing schools. This strategic move led to two rounds of staff reductions. Additionally, one of its co-founders, Anshuman Kumar, chose to step aside to pursue his own venture. Up to now, Teachmint has amassed a total funding of approximately $118 Mn. Noteworthy supporters include Rocketship VC, Learn Capital, Lightspeed India Partners, and Better Capital.

Teachmint, the Bengaluru-based edtech startup, neared a significant INR 200 Crore net loss for the fiscal year ending March 31, 2023, with a recorded INR 180.7 Crore loss, up 37% from the previous fiscal year. Despite high losses, the startup experienced an impressive revenue surge, reaching INR 8.1 Crore in operating revenue and INR 36.9 Crore in total revenue for FY23. The startup faced increased spending of INR 218 Crores, with employee expenses surging by 88%. Initiating staff reductions and strategic shifts towards digitizing schools, Teachmint has garnered $118 Mn in funding, supported by notable investors.

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