Co-founder and CEO Vamsi Krishna said the company will make a public debut of $150-200 million between late 2026 and 2027 to provide exits to early-stage investors and raise growth capital.
“The moment we make a profit, the IPO is related to us, but we want to at least be with ₹Rs 5 billion income threshold. ” said Krishna.
The company’s consolidated operating income increased by 21% year-on-year ₹1.84 million in fiscal year 24 ₹During this period, 1.57 million were used.
Vamsi said Vedantu estimates revenue growth of 30% in fiscal 25 and expects revenue growth of 25-35% in the next 3-5 years.
The company is expected to see its first positive cash flow quarter between January and March. Profitability has been a top priority for the company because it wants to avoid situations where capital growth is needed, Vamsi said.
“What we’re seeing internally is cash collection, and our collection growth will be much more than what you’ll report on the revenue growth you’ll report in the financials. In terms of collections, we should be close to it. ₹“During $3 billion, an increase of nearly 75% in fiscal 25,” he said.
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Scaling offline to fuel growth?
Vedantu, who started offline operations last year, said the first year was profitable for the segment. VAMSI claims the company has opened 20 centers, all of which are profitable in the first year of operation.
Krishna said the company is known for its real-time online tutoring, competitive examinations and skill development for K-12 students, and plans to add about 8-9 centers this year.
Unlike many Edtech players who have been eager to enter offline expansion in the past two years, Vedantu has taken a more measured approach. Krishna previously founded coach Lakshya Institute, which he attributed to his seven years of experience in the field to develop this strategy.
“After completing the whole process of 6-7 years, we clearly understood that offline is not something you are rushing to get in because it involves a lot of capital expenditures and losses. If you have huge capital and can lose 2-4 years, that’s OK, but we’re not in that position. We open in places where we know we can do that,” he said.
Vedantu’s strategy focuses on smaller distributed centers, rather than the metropolitan centers.
In addition to offline growth, the company’s online business continued to expand, up 35%. Currently, the company has 60-40% online revenue, and Krishna expects to grow to 60% in the near future. He believes that omni-channel games have performed well in the market.
VAMSI’s comments are in the context of the Edtech market, seeing a downturn and tightening of funds over the past two years as investors become cautious about the turmoil among major players such as Byju’s and Unacademy. As a result, startups that once raised money easily struggled to raise funds, forcing many companies to pivot, reduce size or shift focus to offline models.
Anup Jain, founding partner at Bluegreen Ventures, said the balance between online and offline expansion will be key. “If they work too hard on both, it can erode profitability without having to ignite growth. So the scripts they pilot and learn should not deviate from it,” said the former managing partner of Orios Ventures.
Before the IPO, the company will need to stabilize its offline operations as it requires high capital expenditure upfront, which may become a focus for investors from a scalability perspective.
“For retail and institutional investors who make up a large number of IPO subscribers, the company should be able to solve valuation-related issues compared to business profit margins in online operations and their growth trajectory for the company. If not resolved, this could lead to a valuation multiple at the time of listing,” Josh said.
Amit Nawka, a technology trading partner at PwC India, told Mint that many Edtech players are highly valued based on their final round of financing, which puts them in a tough position in the next stock.
Vedantu raised $2.4 million in debt and equity from Stride Ventures in September 2024. As of September 2024, the company was valued at $912 million.
“If you go to the private market again, you have a series of problems, such as the correct valuation of the company, and so on,” he said. Nawka added that in this regard, with the huge returns in the public market in India, some Edtechs see IPOs as a more attractive option.
Niche Focus
Just as Vedantu focuses on sustainable offline growth, it also plans to consolidate its new plans, including the Vedantu store and vernacular course, to launch this finance.
“There are some major products that are usually purchased throughout the year. But we have a lot of demand for secondary products. [that are not core offerings but enhance the educational experience]. We delved into this Vedantu store,” Krishna said.
The company also offers courses in several regional languages and plans to cover more languages this year. “We did experiments last year, but this year we will be doing a major research.”
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