Tracing the Business Model of Vedantu

As we move higher in the digital realm,  education is also undergoing significant changes. Since the last decade we have seen a lot of E-learning platforms mushrooming across the world and India was not an exception. As pandemic held on to their natural course of life, digital learning platforms were an abode of hope and connectivity.

Even before the pandemic, these firms had significantly reduced the issues of physical accessibility, unequal distribution of facilities etc. Among a large variety of online learning platforms Vedantu was one platform that stood out  and was committed to providing quality education to every student associated with it.

Vedantu was founded in 2011 by Vamshi Krishna, Pulkit Jain, Saurabh Saxena and Anand Prakash. The firm is owned by Vedantu Innovations Private Limited. Their business model is explicated below.

Key Resources of Vedantu
Key Activities of Vedantu
Value Proposition of Vedantu
Cost Structure of Vedantu
Revenue Stream of Vedantu
Funding of Vedantu
FAQ

Key Resources of Vedantu

The most important resource that the firm relies upon is the quality of the teachers and the skill set of the technical team. The live interaction of the teachers along with their ability to adapt and improvise depending on the requirements of the students have significantly helped in the growth of Vedantu.

Being an online platform the structure and organisation is also as important as the skill sets of the teachers. They have a very well organised website at the perusal of the students.

Key Activities of Vedantu

The major activity that drives Vedantu forward are their live classes and materials. Apart from that they also provide various free courses and free materials that are useful for classes from 6 to 12 and also for students preparing for various competitive examinations.

These free classes and materials are in fact testers which the students can use before they decide to sign up for their paid services. Their classes are mostly live and cover the syllabuses of all subjects from class 6 to 12. The price of the paid services vary depending upon the class of the student and also the courses that they wish to enroll in.

Value Proposition of Vedantu

One of the major highlights of this EdTech company is it's personalised classes and live interaction. Unlike the pre-recorded classes of its competitors, it ensures that they hire skilled teachers who are capable of devising better learning methods based on the requirements and mindsets of the students.

This unique customisation is inclusive of white boarding technologies, video, two way audio et cetera. This startup is also a favourite choice for students who are preparing for competitive examinations.

Like most of the online classes Vedantu also records live classes for the benefit of absent students. They ensure better affordability and accessibility by providing classes and support that functions even with low internet bandwidth.

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Cost Structure of Vedantu

Vedantu has to incur a lot of expenses like any other offline operating firms. The company spends a large part of its revenue on the teachers, depending on their experience and their contribution of courses to the platform.

Including the teachers there are over 1300 employees working in the firm whose salaries need to be catered to. Vedantu thrives on advertisements and promotions for which they spend another large part of their revenue.

Revenue Stream of Vedantu

Vedantu has only a single revenue stream which is through their subscription model. It is safe to conclude that this start-up follows a B2C formula to connect to it the end users. B2C stands for Business to Consumer.

In the subscription model they charge students a certain amount of money depending on their class, course, duration of the course et cetera. These plans vary widely and hence his pocket friendly. You can choose one depending on your needs. So as to ensure credibility and assured quality they also have many demo classes.

The popularity of these subscriptions are accelerating over the years and in 2019 the number of subscriptions almost doubled than that of the previous year. Although they have a single revenue stream, they make sure that they make the best out of it.

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Funding of Vedantu

Through their Unique Selling Proposition and marketing strategies, Vedantu have been successful in establishing itself as a reputed online learning platform. It has received various funding's right from the pre-seed rounds.

Investors like Ramaswamy, Accel, Trifecta Capital Advisors, GGV capital, KB Global Platform Fund, Legend Capital et cetera are a few of them. Recently this Bangalore-based educational startup raised $100 million during its series D funding round from a US-based investment firm named Coatue.

After this, Vedantu is valued at $600 million from earlier $275 million as on February 2020. They have been able to raise nearly $200 million till now.

FAQ

What is the valuation of Vedantu?

The valuation of Vedantu is $600 million as of 2021.

Who is the founder of Vedantu?

Vamsi Krishna, Pulkit Jain, Anand Prakash, and Saurabh Saxena are the founders of Vedantu.

Who are the competitors of Vedantu?

Chegg, BYJU'S, Meritnation, Toppr, Wonderschool and Simplilearn are the competitors of Vedantu.