PlanetSpark, a seasoned education technology company, has disclosed its financial performance for the fiscal year ending March 2023. The company reported a significant 41% increase in revenue of INR 42 crore, rising from INR 30 crore in FY22, as per regulatory filings with the Registrar of Companies (RoC).
Established in 2017 by Kunal Malik and Manish Dhooper, PlanetSpark offers an innovative approach in delivering personalised 1:1 classes covering essential skills tailored for the K8 demographic, including public speaking, creative writing, storytelling, debate, and podcasting.
The revenue streams for PlanetSpark predominantly emanated from the sale of educational services, supplemented by an additional INR 1.1 crore generated through interest on deposits, resulting in a commendable total income of INR 43.5 crore. However, the company encountered substantial expenditures, particularly in employee benefits, marketing, and teachers' salaries, totaling INR 133 crore.
Despite the uphill financial battle, PlanetSpark managed to trim its losses by a noteworthy 18%, with FY23 losses amounting to INR 90 crore. This achievement can be attributed to the company's strategic focus on scaling operations by over 40% and implementing rigorous expense control measures. Furthermore, significant improvements were observed in the company's ROCE and EBITDA margin, standing at -197.1% and 226% respectively, signalling promising prospects amidst a challenging market landscape.
Insights gleaned from TheKredible, a reputable startup data intelligence platform, reveal that PlanetSpark has successfully raised over $34 million in cumulative funding, including a recent injection of $17 million in its latest funding round. Prime Venture Partners emerges as the leading stakeholder, commanding a 32.6% share, closely followed by FIIT-JEE. Co-founders Kunal Malik and Maneesh Dhooper collectively maintain a 29.6% ownership stake in the company.
YFS Analysis on PlanetSpark
The startup news on PlanetSpark's revenue growth amidst industry-wide financial struggles is a positive sign. The company's focus on controlling expenses and improving operational efficiency suggests a promising path forward. However, profitability remains a key concern for the edtech sector as a whole.
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Disclaimer: The information presented in this article is sourced from Entracker News. Any discrepancies or inaccuracies in the data should be attributed to the original source.