Education
Technology
Business
Startups
Employee Benefits
Growth
Venture Capital
Private Equity
Promotions
Word of Mouth
Edtech
Variable Cost
Cash Burn
Loss Making
#edtech saw exponential growth during Covid yet the no# of profitable startups are handful
The amt spend for earning Re1 in Rev is just 40Paise for profitable startups vs >Rs5 for #unicorns like Vendantu/Unacademy
Why PW and DR profitable?
๐งต
#venturecapital #PrivateEquity
The amt spend for earning Re1 in Rev is just 40Paise for profitable startups vs >Rs5 for #unicorns like Vendantu/Unacademy
Why PW and DR profitable?
๐งต
#venturecapital #PrivateEquity
Reasons why DailyRounds (DR) and PhysicsWallah (PW) profitable:
-Growth through Word of Mouth:
DR and PW spend <Rs10cr in Promotions whereas Byjus spent Rs2000cr+ Eruditus spent Rs500cr+ of promotions
Word of Mouth publicity is far more impactful than paid promotions
(2/n)
-Growth through Word of Mouth:
DR and PW spend <Rs10cr in Promotions whereas Byjus spent Rs2000cr+ Eruditus spent Rs500cr+ of promotions
Word of Mouth publicity is far more impactful than paid promotions
(2/n)
Variable cost:
60% of Byjus expenses while 84% of Unacademy expenses are on Employee benefits+ promotion
Whereas
for DR it is just 39% of total expense
Cash Burn of Loss making Unicorns are at crazy levels as their Business Model doesnt support growth through CashFlows
(3/n)
60% of Byjus expenses while 84% of Unacademy expenses are on Employee benefits+ promotion
Whereas
for DR it is just 39% of total expense
Cash Burn of Loss making Unicorns are at crazy levels as their Business Model doesnt support growth through CashFlows
(3/n)
Unit Economics:
Profitable Startups like PW, DR and Scaler Academy depends on Cashflows for their growth
On a unit level, DR/PW spent just Re 0.42 to earn a rupee
The Ebidta margins are >55% of these startups while for startups like Doubtnut it is -1100%
(4/n)
Profitable Startups like PW, DR and Scaler Academy depends on Cashflows for their growth
On a unit level, DR/PW spent just Re 0.42 to earn a rupee
The Ebidta margins are >55% of these startups while for startups like Doubtnut it is -1100%
(4/n)
Revenue Model:
DR follows Subscription based Revenue Model while making loss making startups like Testbook / Doubtnut have Freemium model
Converting students from Free model to Paid model is super tough, which is why these startups end up spending more on unit level
(5/n)
DR follows Subscription based Revenue Model while making loss making startups like Testbook / Doubtnut have Freemium model
Converting students from Free model to Paid model is super tough, which is why these startups end up spending more on unit level
(5/n)
Post Covid Edtech startups are now moving towards Offline + Online model which is likely to add up their Rental cost
Growth driven startups generally ends up burning Millions of dollars
It will be interesting to see if these startups think about Profitability anytime soon
Growth driven startups generally ends up burning Millions of dollars
It will be interesting to see if these startups think about Profitability anytime soon
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