Vedantu - How is it Redefining Education Through Live Online Tutoring?
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Venture into the realm of EdTech, where groundbreaking technology is reshaping education. EdTech acts like a guiding light, transforming traditional education and making knowledge accessible to everyone. Let's dive into the captivating world of education technology (EdTech), where platforms like Vedantu leverage technology to revolutionize education, connect people, and strive for a future where education is within reach for all.
Vedantu resolves this problem through personalized, 'live' online tutoring. It ensures every student associated with it is under the guidance of a dedicated teacher, and that every session on its platform is interactive, intuitive, and interesting. Launched in 2014, Vedantu has become immensely popular among students.
Read on to know more about Vedantu's founders, startup story, business model, revenue model, funding, competitors and more.
Vedantu - Company Highlights
| Startup Name | Vedantu |
|---|---|
| Headquarters | Bangalore, Karnataka, India |
| Sector | Edtech |
| Founder | Vamsi Krishna, Pulkit Jain, Anand Prakash and Saurabh Saxena |
| Founded | 2014 |
| Website | vedantu.com |
Vedantu - About
Vedantu - Industry
Vedantu - Founders and Team
Vedantu - Startup Story
Vedantu - Mission and Vision
Vedantu - Name, Tagline, and Logo
Vedantu - Business Model
Vedantu - Revenue Model
Vedantu - Challenges Faced
Vedantu - Funding and Investors
Vedantu - Investments
Vedantu - Mergers and Acquisitions
Vedantu - Growth
Vedantu - Advertisements and Social Media Campaigns
Vedantu - Awards and Achievements
Vedantu - Competitors
Vedantu - Future Plans
Vedantu - About
Vedantu stands out as India's premier Edtech startup, specializing in online tutoring for students in grades 6 to 12. The platform provides personalized coaching, connecting students with highly skilled teachers who employ advanced technologies like two-way audio, video, and whiteboarding to facilitate live interactions, ensuring a tailored learning experience. Based in Bangalore, Vedantu not only caters to academic needs but also prepares students for competitive exams and offers co-curricular modules.
The platform's cooperative sessions, adapting to the students' pace, distinguish it from recorded videos and traditional classrooms. Vedantu's video sessions accommodate low internet bandwidth, providing accessibility to a broader audience. With robust learning management tools and a comprehensive training approach, Vedantu emerges as a top-tier online educational service provider in the K–12 segment, making learning engaging, accessible, and effective.
Devashish Shrivastava
Vedantu - Industry
According to a Statista estimate, the Indian online education market is expected to grow rapidly, with revenues expected to reach US $5.76 billion by 2023—a considerable increase. With a strong 20.53% annual growth rate (CAGR 2023–2028), the trajectory is expected to continue rising and reach an amazing market volume of US $14.65 billion by 2028.
Of particular note is the expected large contribution from the Indian market, which is projected to grow to a sizeable US $4.73 billion by 2023 for online learning platforms. These numbers show how online learning is becoming more and more important in India, and they also point to a positive future for the sector.
Vedantu - Founders and Team
Vedantu was founded by Vamsi Krishna (co-founder, CEO), Pulkit Jain (co-founder, head of product), Anand Prakash (co-founder, head of academics), and Saurabh Saxena.
Vamsi Krishna
Vedantu co-founder and CEO Vamsi Krishna completed his BTech from IIT Bombay in 2005 and co-founded Lakshya Institute—an educational enterprise that prepares students for engineering and medical entrance exams—with three more IITians: Saurabh Saxena, Pulkit Jain, and Anand Prakash. The four individuals have mentored 10,000+ students and trained more than 200 teachers through Lakshya. Vamsi, Saurabh, Pulkit, and Anand continued to work on Lakshya for nearly eight years until it was acquired by MT Educare in 2012.
Anand Prakash
Anand Prakash serves as the co-founder and Academic Head at Vedantu. Prakash was the Manager of Abhishek Industries before he founded Lakshya Institute and then Vedantu along with the other founders. Prakash is an alumnus of IIT Roorkee, from where he completed his BTech in Paper and Pulp Technology.
Pulkit Jain
Vedantu co-founder and head of product Pulkit Jain has a BTech in Chemical Engineering from IIT Roorkee. He joined Evalueserve as a Business Analyst before co-founding Lakshya Institute and eventually establishing Vedantu with the other co-founders.
Saurabh Saxena
Saurabh Saxena is another co-founder of Vedantu. Saurabh Saxena served as the Head of Academics and exited Vedantu in January 2018. Saxena was a Chemical Engineering student at IIT Roorkee who completed his BTech from the same college. Starting his career by founding Lakshya Institute, Saxena later co-founded Vedantu. On exiting the company, Saxena founded Power Club, where he is serving as CEO. Saurabh had a brief stint as the Director of Ekya Schools.
The edtech unicorn has an employee strength of 5,001–10,000 employees.
Vedantu - Startup Story
The story of Vedantu has the story of the four IITians and the story of Lakshya at its core. It was Vamsi Krishna who took the initial initiative along with the other IITians, founded the primary venture, and named it "Lakshya" in 2006. IIT Roorkee BTech graduates Saurabh Saxena, Anand Prakash, Pulkit Jain, and Vamsi Krishna started Lakshya Institute with an aim to train for a wide variety of tests and exams.
Lakshya stuck to its goal for the next six years, although it had trouble expanding its offline model to five locations in Punjab. Getting qualified teachers to teach in remote places was a big problem. Krishna set out on a transformative journey to overcome obstacles, focusing on efficiency and innovation for a good and pleasurable change. To increase Lakshya's effect and scalability, a strategic transition rather than merely adaptation was the aim.
Therefore, they soon started working on it through Lakshya. However, they eventually realized that to up the game, they needed something beyond the brick-and-mortar institute, and this would be done only by leveraging technology and the internet. Such an institute would be online and scalable.
They found that to establish an online education platform, they would be needing dedicated and skilled teachers. In 2012, realizing that the existing model was not yielding the desired results, Krishna candidly admits, 'It was not working.' Taking a strategic step, the friends decided to sell the venture. In a significant move, they sealed a Rs 30 crore deal, selling the business to coaching player MT Educare. After a two-year transition period with the company, the friends took a bold step into online live tutoring. In 2014, Vedantu was born, signaling their commitment to innovation in education.
Vedantu - Mission and Vision
The company's primary mission is to make high-quality education accessible to all. In contrast to group classes, they aim to provide a better experience and let individuals select what suits them the most. Their goal is to establish a future in which everyone has easy access to and customization of high-quality education.
Vedantu's vision is to transform traditional teaching and learning methods. Through a blend of quality teachers, engaging content, and advanced technology, they aim to provide students with a superior learning experience, distinct from traditional offline methods, ultimately enhancing their academic outcomes.
Rishabh Rathi
Vedantu - Name, Tagline, and Logo
The name ‘Vedantu’ is the result of combining the words 'Veda' and 'Tantu'. 'Veda' means knowledge and 'Tantu' means network; thus, Vedantu acts as a network of wisdom.
Vedantu - Business Model
Vedantu provides a variety of services with an emphasis on online live tutoring under a B2C (Business-to-Consumer) business model. The company uses a virtual learning platform called WAVE (Whiteboard Audio Video Environment) to give K–12 peoples individualized, interactive instruction. This covers online coaching for a range of competitive exams in addition to routine academic support.
Vedantu's business strategy is centered on EdTech, remote learning, and mobile learning (m-learning). Through the integration of technology and high-quality instruction, Vedantu aims to transform and improve the educational experience for peoples. Using an online platform gives students freedom and makes education available to those who need it, no matter where they are or what their circumstances may be.
The business plan of Vedantu comprises giving away few free lectures and digital educational resources in addition to delivering paid online teaching services. This dual strategy guarantees that the site serves a wide range of users, including those looking for low-cost educational options and those getting ready for competitive tests.
Vedantu - Revenue Model
Vedantu diversifies its revenue streams through various channels. Here are the key sources:
Subscription Plans
- Plan options for Vedantu Pro are paid monthly or annually.
- Study materials and individualized learning elements are accessible for a fee.
Exam-Preparation Courses
- Paying courses for competitive exams like NEET and IIT-JEE are available from Vedantu.
Partnerships and Collaborations
- Works together to provide universities with specialized learning solutions.
- Income via partnerships and license fees.
Sponsored Advertisements
- Makes money by running sponsored content and tailored advertisements.
- Collaborations with brands to get extra revenue.
Vedantu - Challenges Faced
Vedantu encountered significant challenges during its journey, with money surprisingly not being a major concern for the co-founders. In the early stages, the struggle to scale was apparent as the one-to-one teaching model faced limitations. Realizing the need for change, Vedantu transitioned to a one-to-few model and eventually to a one-to-many approach, marking a pivotal shift in their strategy.
Vedantu, however, suffered a severe setback in 2017 that nearly brought it to an end. An important $8 million fundraising round that was anticipated in September was abruptly canceled by the international venture capital fund after a one-month delay. With just three weeks remaining on its runway due to this unanticipated turn of events, Vedantu was on the verge of going out of business. A low point in Vedantu's journey was reached when almost 30% of the personnel had to be let go in a desperate attempt to survive. During this turmoil, one of the co-founders also left.
The co-founders learned two important things from the difficult experience: never presume success before it's time and cherish money even when it goes above and beyond expectations. This turbulent time highlighted how crucial it is for Vedantu to be resilient and adaptable in order to overcome unanticipated obstacles and come out stronger.
Vedantu - Funding and Investors
Vedantu has raised around $292.2 million in funding to date. Vedantu had witnessed a total of 11 rounds of funding.
The table below provides a detailed description of the funding raised by Vedantu so far:
| Date | Stage | Amount | Lead Investors |
|---|---|---|---|
| February 24, 2022 | Series E | $2 million | Orio |
| September 29, 2021 | Series E | $100 million | ABC World Asia, Coatue, Tiger Global, WestBridge |
| July 15, 2020 | Series D | $100 million | Coatue |
| April 23, 2020 | Series C | $7 million | KB Global Platform Fund |
| February 13, 2020 | Series C | $24 million | GGV Capital |
| August 29, 2019 | Series C | $42 million | Tiger Global Management, WestBridge Capital |
| August 8, 2019 | Debt Finacing | Rs 9.42 crore | Trifecta Capital Advisors |
| November 24, 2018 | Series B | $11 million | Accel, Omidyar Network, TAL Education Group |
| May 7, 2015 | Series A | $5 million | Accel, Tiger Global Management |
| August 1, 2014 | Seed Round | $400K | - |
Rishabh Rathi
Vedantu - Investments
Vedantu contributed $2 million to Instasolv's seed round fundraising on June 23, 2020, making a total investment in the ed-tech firm. However Vedantu has since exited from this transaction, changing the composition of its investment portfolio.
Vedantu - Mergers and Acquisitions
Vedantu has acquired three companies to date.
Here are the acquisition details:
| Acquiree Name | Acquired Date | Price |
|---|---|---|
| Deeksha College | Oct 13, 2022 | $40 million |
| Pedagogy | July 15, 2021 | - |
| Instasolv | February 22, 2021 | - |
Vedantu - Growth
The edtech sector in India has grown significantly in the last several years, and a number of platforms have emerged to meet the demands of students. Vedantu has become a prominent participant in the edtech space, revolutionizing academia not only in India but around the world.
Some of the growth highlights of Vedantu are:
- It offers more than 2.1 crore hours of live learning
- Vedantu boasts of having 10+ lakh monthly Youtube views
- It promises to resolve 25+ lakh doubts via the Vedantu app
- Vedantu brings LIVE classes opportunities for students from across 57+ countries
Financials
| Vedantu Financials | FY20 | FY21 | FY22 |
|---|---|---|---|
| Operating Revenue | Rs 25 crore | Rs 94 crore | Rs 169 crore |
| Total Expenses | Rs 186 crore | Rs 748 crore | Rs 891 crore |
| Profit/Loss | Loss of Rs 150 crore | Loss of Rs 616 crore | Loss of Rs 696 crore |
| Cash from Ops | Deficit of Rs 143 crore | Deficit of Rs 655 crore | Deficit of Rs 518 crore |
Expenses Breakdown
| Vedantu Expenses FY21-FY22 | FY21 | FY22 |
|---|---|---|
| Employee benefit expenses | Rs 407 crore | Rs 489 crore |
| Advertising promotional expenses | Rs 176 crore | Rs 182 crore |
| IT Cost | Rs 19 crore | Rs 25 crore |
| Seminars conference expenses | Rs 18 crore | Rs 29 crore |
| Others | Rs 128 crore | Rs 166 crore |
EBITDA
| Vedantu Financials FY21-FY22 | FY21 | FY22 |
|---|---|---|
| EBITDA Margin | -447.41 | -350.97% |
| Expense/Rs of Op Revenue | Rs 7.96 | Rs 5.27 |
| ROCE | -110.25% | -116.93% |
Vedantu - Advertisements and Social Media Campaigns
Vedantu Campaign
Aamir Khan, a well-known actor from Bollywood, starred in a creative advertising campaign released by Vedantu to promote their Ai-LIVE technology. The marketing presents Ai-Live as the newest EdTech innovation that democratize education for millions of students by crafting a unique narrative. Vedantu hopes to revolutionize education by utilizing cutting-edge technology and the support of a well-known figure like Aamir Khan to make high-quality education accessible and reasonably priced.
Vedantu - Awards and Achievements
Vedantu has earned several awards and distinctions, some of which are highlighted below:
- Vedantu earned the title of 'Best Organization to Develop Technology for Education' at the DNA Innovative Education Awards in February 2016.
- The platform was a winner at 'KINSES 2016 EduAwards.'
- Vedantu was honored with the 'Online Education Startup of the Year' award at Elets World Education Summit in 2015.
- In 2015, Praxis Media recognized Vedantu as the 'Most Promising and Live Online Tutoring Platform in India.'
- Vedantu's founders, Vamsi Krishna, Pulkit Jain, and Anand Prakash, were honored with the 'Comeback Kid' title at the ET Startup Awards in August 2020.
Yash Gupta
Vedantu - Competitors
Vedantu's top competitors are -
However, new rivals are emerging every other day with the advancements in the edtech segment.
Rishabh Rathi
Vedantu - Future Plans
Vedantu's future plans include the creation of distinct categories for primary children, starting from kindergarten. Infusing learning with enjoyment and making learning accessible to the students of remote areas is Vedantu's supreme strategy. With 1 million lifetime learners and 4x growth in 2020, the company will explore new prospects and engage in expedient educational services in the future.
The company plans to open more than 30 offline centers in different Indian cities that would provide JEE, NEET, and Foundation courses in an effort to increase its market share. These centers will be situated in important cities such as Delhi, Patiala, Pune, Nagpur, Muzaffarpur, Bangalore, Chennai, Coimbatore, Madurai, Trichy, Puducherry, Hyderabad, Visakhapatnam, and Vijayawada, as per the official press release of December 12, 2023.
Michelle D’souza
FAQs
How does Vedantu work?
Vedantu is an online tutoring platform that provides live online masterclasses for the students to help them ace their examinations while they stay at home.
Who are the Founders of Vedantu?
Vedantu was founded by Vamsi Krishna (co-founder, CEO), Saurabh Saxena, Pulkit Jain (co-founder, head product), and Anand Prakash (co-founder, head academics) where Saurabh exited the company in 2018.
How much is Vedantu's Revenue?
Vedantu recorded Rs 169 crore in revenues in FY22, which increased from Rs 94 crore that it earned in FY21.
Who are the Top Competitors of Vedantu?
Vedantu's top competitors are Byju’s, Toppr, Unacademy, Eruditus, Physics Wallah, Lead, upGrad and more.
What were the Vedantu layoffs in 2022?
Vedantu had initially laid off around 200 employees on May 5th, 2022, and announced its second round of layoffs on May 18th, 2022, when the company parted with 424 more employees. The company again laid off 100 employees, who received their termination letters allegedly between July 4-9th 2022.
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