Upgrading platform FunctionUp aims to close FY23 with a net income worth Rs 15 crore, Bharat Gupta, co-founder, FunctionUp told FE Education Online, but declined to comment on the net loss. According to Gupta, the company plans to introduce new cohorts in data analytics, product management, user interface (UI) and user experience (UX) design, and front-end engineering. “New cohorts will launch every 10 days with approximately 100 learners in each batch,” Gupta said. The company which started operations in July 2021 claims to have recorded gross revenue of Rs two crore in FY22, while it recorded a gross loss of Rs 50 lakh.
Company expenses include teacher fees, technology and operations.
According to the company, she earns a 17% commission every month, which is paid by her learners from their salary for about 30 to 36 months. “The guaranteed minimum package for our learners is Rs five lakh. On average, our learners are recruited at a flat rate of Rs nine lakh,” Gupta said. This means that if the company earns a commission of Rs 7,083 every month for a period of 30-36 months from the learner, the total amount earned as commission is around Rs 2.55 lakh. Likewise, it earns Rs 2.95 lakh as commission for the same duration of learners who earn Rs six lakh per year or more.
Launched in July 2021, FunctionUp claimed to have conducted its first cohort in August 2021 with 50-60 students. The company says it has increased the batch size to 250-350 learners through a teacher-student ratio of 1:15. It plans to add 6,000 learners by the end of FY23. Currently, cohorts are four months long, and there are plans to start part-time and weekend cohorts. The company, which currently targets engineering students, plans to target professionals. “So far, we have enrolled 1,000 students in five cohorts. We typically conduct cohorts at six to eight week intervals. We will soon be launching our sixth and seventh cohorts by the end of June,” Gupta added.
Additionally, FunctionUp claims to receive approximately 30,000 applications each month, of which it claims to select approximately 300 candidates through aptitude tests and interviews. On the placement front, the company says it has placed more than 100 students with companies such as Paytm, JustDial, and CoffeBeans consulting, among others.
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