Classplus Revenue to Grow 65% to Rs 250 Crore in FY24

New Delhi, Jun 2 (PTI) B2B edtech firm Classplus expects its business to grow by 65 per cent to over Rs 250 crore in the financial year 2024, a senior company official said.

The Tiger Global and Peak XV Partners (formerly Sequoia Capital)-backed firm claims to be on the brink of profitability and continue to maintain the growth by improving operational efficiency.

"Classplus achieved remarkable growth in FY24. We expect revenues to soar upwards of Rs 250 crore (unaudited), marking a 65 per cent increase from Rs 149 crore in FY23. Additionally, we made strong strides towards profitability, bringing down losses by 70 per cent to about Rs 80 crore in FY24," Classplus co-founder and CEO Mukul Rustagi told PTI.

Classplus helps content creators and educators launch and scale their online coaching businesses by monetising their social media.

"Our success is associated with our content creator partners. Classplus creators conduct over 2 lakh live classes every month. These creators have multiplied their earnings 5-6 times by reaching out to students beyond their local geographies. As of May, over 8 crore students across more than 4,500 cities and towns in India and abroad have learnt through an app powered by Classplus," Rustagi said.

The company has raised a total of approximately USD 150 million in seven rounds of funding so far from global marquee investors, including Tiger Global, AWI, Blume Ventures, GSV Ventures, RTP Global, Sequoia Capital India's Surge, and Times Internet, among others.

"Our valuation in the latest round was pegged close to USD 565 million and we raised USD 65 million in our latest series D round. What's noteworthy is that, as we inch closer to profitability, most of the cash raised in our last round is still in the bank," Rustagi said.

The company provides AI-enabled marketing tools, marketing campaign analytics, capability to publish books and launch merchandise, paid one-on-one sessions, no-code website with a wide range of ready-to-use website templates etc. to content creators.

"Last couple of years, we also saw the rise of the creator economy, and content creators like fitness instructors, programmers, language coaches, chefs, yoga trainers and many more started using Classplus to disrupt the way they shared their expertise with their followers online. Now the non-academic category contributes over 30 per cent to the business," Rustagi said.

He said that the earnings of non-academic creators soared by 2.5 times from the previous year and the number of creators grew by 300 per cent from 2021.

Rustagi said: "78 per cent of Classplus creators are from tier 2 and beyond cities and are impacting the lives of students from remote tier III and tier IV towns and villages who weren't able to afford and access quality education offline."

Besides investment in products, Classplus plans to invest in new acquisitions and partnerships to enhance services for content creators.

The company has made strategic investments in vernacular government test preparation companies like Testbook and Gyan Live.

Rustagi is also bullish on recently launched Polaris School of Technology (PST), a 4-year BTech course by the company that combines classroom learning with real-world industry experience.

"PST is a first of its kind computer science degree programme in the country that provides practical industry experience to students through AI/ML specialisation. PST aims to bridge this skill gap and make students industry-ready and employable at top global tech companies right from day one," he said.