Hyderabad-based edtech company Bhanzu experienced a 33% drop in revenue in FY24, decreasing to Rs 34.03 crore from Rs 51.28 crore in FY23.
Founded in 2020 by Neelakantha Bhanu and Prachotan DL, Bhanzu is a math-focused learning platform that offers interactive courses designed to enhance math skills and cognitive abilities in children aged 5 to 16. According to its website, Bhanzu has trained over 30,000 students through its various programs.
Bhanzu has raised a total of Rs 135.92 crore in funding over 2 rounds, the latest funding raised in September 2022 through a Series A round led by Eight Roads Ventures. Standing at a valuation of over Rs 800 crore, the company competes with Cuemath and Unacademy.
Co-founder Neelkantha Bhanu holds the majority of the company’s shares, with over 30% ownership. Lightspeed and Eight Roads Ventures each maintain a significant stake, holding over 10% each. Approximately 11.71% of company shares are allocated to ESOP.
Alongside the revenue decline, Bhanzu’s expenses increased to Rs 174.40 crore in FY24 from over Rs 120 crore in FY23. Employee benefits accounted for the majority of the expenses, at over 40%, while advertisements and legal and professional charges also contributed to the expenses.
Bhanzu’s losses expanded in FY24, recording a loss of Rs 144.43 crore compared to a loss of over Rs 70 crore in FY23.
However, the company’s current EBITDA margin slipped further in negative to -412.41% while ROCE jumped to 635.01%.