PurpleTutor records 4.5X growth in scale in FY21-22, crosses 10cr in revenue

PurpleTutor which focusses on A.I based live classes has recorded a 4.5X jump in revenue in FY21 compared to last fiscal year. Its overall revenue for FY 21 stood at ₹10.41 cr. While Edtech as a sector has shown companies scaling in FY21, PurpleTutor also records a big jump in growth.
The revenue from operations showed a massive growth when it went from ₹2.30 cr in FY20 to₹10.41cr in FY21 as per the financial statements of the company. More than 90% of the revenue comes from international operations. The company believes its product has global acceptance, and the revenue mix is a testament to that. The company has grown leaps and bounds since it started operations in 2019 when the revenue from operations was ₹6.3 lakhs for FY19.
The company focuses on A.I. driven live classes across computational thinking subjects such as app development, game design, 3D game design, Artificial Intelligence (A.I.), machine learning, etc. There is a very degree of repeat business with customers buying more and more courses as they continue their journey with PurpleTutor.
The surge in revenue also led to a surge in expenditure which rose from ₹2.98 cr in FY20 to ₹14.71 cr in FY21. The biggest cost was marketing promotions which made up 46% of the expense. The payment to teachers was the second largest cost driver in the company at 30% of overall expenses, this was ₹4.4cr in FY21 and in the previous fiscal stood at ₹98 lakhs in FY20. The cost of teachers increased by 4.5X, inline with the revenue growth.
The company has been extremely efficient in scaling with business given the expenditure done to achieve the revenues. Today it spends ₹1.4 to earn a single rupee, which is very efficient since there is a very high degree of repeat and revenue is international.. Overall at the unit level the company is profitable.
The company is focussed on the South Asia, Middle East and India markets. Given the stellar performance in FY21, the company will continue to build on these markets along with expanding in North America in FY22. It launched Artificial Intelligence (A.I.) in classes across age groups after extensive testing. The A.I makes every teacher a super teacher giving them inputs in real-time in terms of what to do in classes at the same time making the journey of the learner personalized. Personalization of the learner’s journey is one of the most sought-after goals of A.I. in classes. PurpleTutor is solving this with its very unique taking on A.I. which is not focussed on replacing teachers but enhancing them. This allows every child to carve out their own unique individual learning path, completely breaking the one-size-fits all classroom approach.