Upgrade’s net loss widens as ad spend doubles in FY11

The company reported a consolidated net loss of 211 crores for the financial year 2011, as against the net loss 78 crore for 2019-20 (FY20), shows the company’s filings with the Ministry of Corporate Affairs (MCA). the company spent 205 crores on advertising and promotion in the financial year 2011, against the total expenditure 95 crore a year ago. The company’s employee benefit costs also doubled. to 161 crore 89 crore a year ago.

On a standalone basis, the company reported a net loss of 202 crore for the year under review against the loss of 78.89 crore in FY20.

upGrad’s consolidated revenue nearly doubled 302.26 crore in FY 2011 due to pandemic-induced restrictions on the movement of people, which led to an increase in the demand for online education. A year ago, the edtech firm’s consolidated revenue was 162.57 crores.

The transition to online tutoring is helping edtech companies like Upgrade, and thus, many companies are expecting a strong growth in revenue for 2021-22 (FY22) as well. In a recent interview, Mayank Kumar, Co-Founder and Managing Director of upgrade told VCCircle that The company is on track to double its revenue For FY 22. SoftBank-backed edtech unicorn Eruditus is hoping too Its revenue will double in FY22.

Edtech companies are aggressively taking the inorganic route to either expand their product offerings or reach new geographies, thereby helping them increase their revenues.

During the financial year 2011, upgrade achieved Transforming Higher Education Gate Academy Pvt Ltd and Recruit India Pvt Ltd have investments in Upgrade 4.03 crore in Optionally Convertible Debentures of Transforming Higher Education Gate Academy and has also increased the loan amount 65 lakh to the company as of March 31, 2021, the company said in the regulatory filing. Last month, it announced the acquisition of online higher education business Talent Education Ventures Private Limited

The company has already acquired five companies in the current financial year. In July, the company said it was setting aside $250 million for mergers and acquisitions.

Upgrade recently merged three of its subsidiaries – Upgrade Campus (formerly Impertus), Upgrade Jeet (formerly Gate Academy) and Upgrade KnowledgeHut (formerly KnowledgeHut) into a single parent entity to execute a unified strategy. announced.

The company, which joined the prestigious Unicorn Club in August last year after raising $185 million from International Finance Corp, IIFL Group and Temasek, earlier this month appointed Eruditus Education’s Director of Inside Sales Vikram Vyas as its vice-president-development, Appointed International Sales.