Net revenue

Ed-tech platform SpeEdLabs aims to close FY23 with net income worth Rs 25 crore, aims to raise $20 million in next year

Teevra Edutech Pvt Ltd, which operates the ed-tech brand SpeEdLabs, is aiming to end FY23 with a net income worth Rs 25 crore, Vivek Varshney, Founder, SpeEdLabs told FE Education, he however declined to comment on the net loss. “We are eager to grow and expect to find good, big investors so that we can achieve our targeted revenue,” he said. The company claims to have recorded 4x growth in revenue from the sale of its products such as business-to-business (B2B) ed-tech software as a service (SaaS) products, to Rs three crore in FY22 from 70 lakh FY21. The company aims to grow 10x to hit the Rs 30 crore mark in FY23.

SpeEdLabs, which has been in operation for more than 6.5 years, says it used the first two years of its operations to finalize product and content. This was followed by a partnership, in addition to developing sales over the next few years. In FY22, the company raised Rs 14.31 crores from Mumbai Angels, LetsVenture, Ecosystem Ventures and SucSeed Ventures in a pre-series funding round. “In the next 10 to 12 months, we are aiming to raise $20 million,” he added.

Regulatory files viewed by business intelligence platform Tofler revealed that SpeEdLabs’ revenue from operations rose 3.22% to Rs 2.69 crore in FY21 from Rs 2.60 crore over the same period of the previous year. The company’s net loss decreased by 11.68% to Rs 3.35 crore in FY21 from Rs 3.74 crore in FY20. In the past two years, the company claims to have registered over 1.5 lakh students.

SpeEdLabs claims to operate primarily on a business-to-business (B2B) business model, under which it provides services to various schools and small tuition centers at certain prices. For coaching centers, the average ticket price is Rs 1,200 per student per year, while for schools, the fare is Rs 1,000 per student per year. However, depending on the location and capacity of the institutions, the company claims to provide the products at negotiable prices. “As it is the third year, we have lowered the price to win the sale, especially for schools in Tier 2 and Tier 3 cities, who cannot afford a higher ticket price,” said said Varshney. Furthermore, the company claims to get 15% of this revenue share from business-to-consumer (B2C) models, at an average ticket price of Rs 9,500, where it sells its products directly to students.

Currently, the company claims to work with over 50 schools and 3,000 tuition centers in over 300 cities across the country. In the 2022-23 academic year (AY), SpeEdLabs aims to link 200 schools and by the end of FY24, the company expects to partner with more than 2,000 schools. “The tuition industry in India represents an investment of Rs 2.5 lakh crore every year, of which only eight percent is organized domestically. The remaining 92% are individual, unorganized tutors who are segmented into different parts. We want to partner with them so they can transition from the traditional print mode to results based on more analytical and personalized solutions after the physical conference,” said Varshney.

SpeEdLabs plans to launch its Hindi content in nine states including Rajasthan, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh and Chhattisgarh. Currently, the company claims to have set up its sales team in about 50 cities targeting various schools to collaborate with. “By March 2023, we have set a target of 25,000 tutors on our platform and to be present in 150-200 cities across India,” Varshney noted.