Vedantu, the Bengaluru-based online education platform for K12 students, has announced its best quarter ever, becoming profitable in the fourth quarter of FY25.
The company earned Rs 90 crore in the January–March quarter, a 67% increase from last year, and generated more than 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 finished FY25 with Rs 284 crore in collections, a 55% increase from the previous year. At the same time, the company reduced its cash burn by 30%, bringing it down to Rs 70 crore.
India’s edtech sector has faced criticism after the pandemic, but Krishna disagreed with the negative views. He wrote, “The past few years have made edtech, especially K12, look bad.”
He acknowledged the challenges after COVID and some setbacks for companies, but he believes the overall outlook is too pessimistic. He thinks 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 prioritize student outcomes will build enduring franchises. And right now, this sector is undervalued, making it a prime opportunity for builders and investors,” Krishna added.
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