Bengaluru-based SaaS edtech firm Teachmint reported impressive financial results for the fiscal year ending March 2024 with remarkable doubling of its revenue and significant reduction in losses. As per its consolidated financial statements, Teachmint’s revenue from operations rose to ₹17.1 crore from ₹8.15 crore in FY23. That translates to the strategic efforts of the firm toward enhancing its offerings and adapting to the changing educational landscape.
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Financial Performance Summary
During the last fiscal year, Teachmint’s revenues grew mainly through subscriptions-based educational software solutions. That accounted for 73% of Teachmint’s operating revenues, thereby posting a growth of 56%. The figures thus reached ₹12.5 crore. Rest of the revenue was through sales of devices like biometrics, interactive flat panels, and GPS devices.
Although the revenue growth is positive, Teachmint has failed to scale up in a substantial manner. However, the company has taken significant strides in cost control, which were at 26.6% of ₹160 crore in FY24 as compared to ₹218 crore in the last fiscal. Significant decreases were reported in the areas of employee benefits, marketing expenses, and IT costs that were at 21.2%, 63.6%, and 9.1% respectively.
Losses and Operational Efficiency
Teachmint successfully reduced its overall losses by 39.2%, bringing them down to ₹110 crore from ₹181 crore in FY23. Excluding non-cash employee stock option plan (ESOP) costs, the company reported losses of ₹82 crore for the fiscal year. This is a testament to the effort the firm has put into streamlining the operations and efficiency, reflected in its return on capital employed (ROCE) and EBITDA margins standing at -24.7% and -198%, respectively. At the unit level, Teachmint spent ₹9.36 for every ₹1 of revenue generated in FY24.
Strategic Turn Towards Digitalisation
Teachmint’s transformation, as well as substantial revenue growth, lies in the strategic focus on digitizing schools. They were essentially positioning themselves as an integral partner for educational institutions looking to modernize their operations. Offer all-rounded software solutions designed specifically for schools and educators, creating a niche in the highly competitive edtech industry.
However, the company hasn’t been without its challenges. The company laid off more than 70 employees during FY24 as part of its restructuring exercise aimed at improving the operational efficiencies of the company. Still, Teachmint is quite resilient and thus far has raised more than $100 million in funding. The last major funding round was a $78 million Series B in October 2021, that valued the company at $500 million.
Competitive Landscape
Teachmint has compared in green so far, though peers Classplus and Lead School have achieved substantial revenue growths of their own. Classplus saw its two-fold rise in revenues to ₹213 crore, while Lead School had 25% revenue growth to ₹370 crore. The edtech is an extremely competitive space with continuous innovations and extensions.
In summary, Teachmint’s FY24 financial results point out the rise in revenues and effective cost control, making the company a bright prospect for the edtech sector. As it continues to digitize educational institutions and enhance its software solutions, the company is all set to determine India’s future in education. With such a robust foundation and strategic vision, the company is best positioned to overcome what exists in challenge and build on what is nascent in digital education solutions.
