Online education startup Eruditus grew its revenue nearly three times to around $69 million in the just concluded financial year, the Mumbai-based firm, which focuses on the professional education sector, said.
In comparison, India’s largest edu-tech startup Byju’s, which commands a valuation of over $5 billion, said recently it would look to close FY19 with revenues of Rs 1,400 crore (about $200 million).
While Byju’s operates largely in the K-12 education segment with millions of users, Eruditus’ business has a far smaller base but much higher paying customers.
“Previously most of our courses were on management topics, but this year we focused a lot on courses in digital, data science and machine learning. That’s where our growth came from,” said Ashwin Damera, co-founder of Eruditus. “This year we will be focusing a lot on AI, game development and healthcare.”
Growth also came from a three-fold increase in students signing up for its courses, from around 9,600 in FY18 to a little over 29,000 in the last fiscal. The company said it earns an average of $3,300 from each student, but is looking at introducing new courses in partnership with local colleges at roughly half that cost.
“We want to work with local schools to go into the early career professional segment (people with 3-5 years’ experience). At this level, the affordability is an issue because these people are not earning large salaries,” Damera said.
Eruditus, along with sister concern Emeritus, have partnered with top colleges in the US and Europe such as Massachusetts Institute of Technology (MIT), INSEAD, London School of Economics, and others to create training courses targeted at professionals with eight to 20 years of experience.
With entry into newer segments, the firm says it can grow its student base to around 55,000 in the current fiscal, increasing its revenues to around $140-150 million.
“In percentage terms, while the growth might be lower, in absolute terms we will add more revenue to our topline than the previous fiscal,” said Damera.