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21K School Turns EBITDA Positive in FY24 Despite Flat Revenue Growth

  • January 17, 2025
  • By Team TheKredible

Bengaluru-based 21K School, a formal K-12 online education provider, reported a modest revenue growth in FY24, reaching Rs 33.44 crore, up slightly from Rs 33.28 crore in FY23. The company offers Indian, American, and British curricula to students aged 3 to 18 years, serving a diverse community of 7,500 students across 78+ countries.

Over 97% of its revenue in FY24 was derived from operations, down from over 99% in FY23. Its operating revenue streams include: online school fees accounting for over 94% of the operating revenue, educational support and platform services accounting for over 3%, and other operating revenue making up the remainder.

Founded in 2020 by Yeshwanth Raj Parasmal, 21K School has raised Rs 38.05 crore across two funding rounds, with the latest seed round completed in November 2021. Key shareholders include SantoshKumar Anniyappan Vajiravelu (35.26%), Yeshwanth Raj Parasmal (17.63%), and Zettadesk Technologies (5.03%).

Despite revenue stability, 21K School reduced its losses significantly in FY24, reporting a loss of Rs 2.25 crore compared to a loss of Rs 26 crore in FY23. It slashed expenses by 45% to Rs 32.68 crore in FY24, down from Rs 59.28 crore in FY23.

Key Expense Categories and Trends:

  1. Employee Benefit Costs: Increased to 69.03% of total expenses in FY24, up from 47.63% in FY23.
  2. Advertisement Costs: Dropped significantly to 0.67% of total expenses in FY24 from 21.12% in FY23, indicating a strategic shift toward organic growth and referrals.
  3. Cost of Materials: Accounted for 5.07% of total expenses in FY24.
  4. Depreciation and Finance Costs: Both remained minimal, with depreciation at 0.21% and finance costs at 0.21% of total expenses in FY24.

Financial Metrics:

  • EBITDA Margin: Improved dramatically from -77.43% in FY23 to a positive 2.70% in FY24, reflecting the company’s operational efficiencies.
  • ROCE: While still negative, it improved from -628.71% in FY23 to -12.93% in FY24, showing better capital utilization.

21K School’s financial turnaround in FY24 demonstrates a focus on cost management and operational efficiency. As pioneers in personalized online education, the company continues to innovate, leveraging its proprietary learning platform to provide high-quality education for a global student base.