Vedantu appears to have pulled off a remarkable turnaround. A far cry from piling massive losses worth INR 696 Crin FY22, the edtech startup has been cash flow positive in the first two quarters of CY25 and is even mulling an IPO. So, how did Vedantu manage to turn it all around when giants like BYJU’S and Unacademy couldn’t?
A Strategic Pivot To Hybrid Model: As schools reopened after the pandemic waned, Vedantu quickly adapted to market demands by pivoting to a hybrid model from a pure online learning one. Rather than burning cash on building physical centres like competitors, Vedantu smartly acquired a profitable offline player, Deeksha, for $40 Mn in 2022. Deeksha contributed 55-60% of the startup’s revenue in FY25.
Aggressive Cost Management: Vedantu also implemented a strict cost discipline to fix its unit economics. It slashed its workforce from 3,500 in FY22 to under 1,000 employees by FY23-end and pruned variable expenses (sales and marketing expenditures and teacher delivery costs) to stabilise its contribution margin.
On the back of these factors, Vedantu claims to have grown its revenue to INR 232 Cr in FY25, from INR 184.5 Cr in FY24 and INR 152.5 Cr in FY23.
IPO On The Cards: With revenue scaling and two consecutive quarters of positive cash flow in its pocket, Vedantu is now gearing up for a $100 Mn (nearly INR 870 Cr) IPO in the next two years. The startup plans to list when it hits INR 800 Cr in annualised revenue run rate.
All in all, Vedantu may have plugged its leaks, at least from the very looks of it, but the bigger question is: How long will its revival last?
From The Editor’s DeskCracking The Egg Code: Eggoz is rewriting India’s egg story by building tech-first farms and cracking into frozen foods. With 2 Cr eggs sold monthly, 137% YoY revenue growth, and $20 Mn fresh funding, Eggoz is scaling fast in India’s $7.94 Bn egg market.
Eduvanz Cofounder Quits: Raheel Shah, the cofounder and chief business officer of the education-focussed NBFC, has stepped down from his role. The resignation comes at a time when the company is undergoing restructuring.
Tenacity Joins Exotel’s Cap Table: The investment firm has acquired a stake in the customer engagement platform via a secondary transaction. Sources said that Tenacity purchased the shares at about 40% lower valuation than in the previous round.
Fintech Funding Zooms In H1: Homegrown fintech startups raised over $1.6 Bn in H1 2025, up 60% YoY. Sequentially, funding rose 7% from $1.5 Bn. The healthy capital inflow came on the back of a big spurt in growth and late stage deals.
Zaggle To Acquire Rio.Money: The listed fintech SaaS major is acquiring the fintech startup for INR 22 Cr to enter the consumer credit card market. The acquisition will help Zaggle grow faster in the consumer payments space.
Troubles Galore For BluSmart: An Ahmedabad bench of the NCLT has admitted an insolvency plea against the electric vehicle ride-hailing startup over unpaid financial obligations to the tune of INR 1.28 Cr.
Google’s AI Push For Indian Ads Empire: Google is not just leveraging its YouTube and Search tools to scale massive ad revenues in India, but has also engaged brands, startups to solve their marketing pain points. So, how is Google AI wooing Indian brands?
CoinDCX Denies M&A Talks: The crypto unicorn’s cofounder Sumit Gupta has dismissed a report that suggested that US-based crypto exchange Coinbase is in advanced negotiations to acquire the company. CoinDCX is recovering from a recent $44 Mn hack.
Inc42 Startup Spotlight Can Zango Crack India’s Compliance Conundrum With AI?Financial institutions have long relied on consultants for compliance, making the process expensive, manual and valid only at a single point in time. As regulations from bodies like the RBI, SEBI, and IRDAI become more complex and fast-changing, this outdated model struggles to keep up, exposing businesses to regulatory risks.
A Smarter Compliance Stack: Zango AI offers a hybrid ‘software + services’ regtech platform that combines legal intelligence with AI to provide real-time, continuous compliance. Built by seasoned founders with deep experience in compliance and AI spaces, Zango automates the full compliance stack — from regulatory monitoring to marketing reviews — while maintaining trust through human legal oversight.
Scaling Trust With Tech: With regulations intensifying globally, financial players are also under pressure in India to stay compliant without slowing growth. Zango’s modular platform, fine-tuned for various legal systems and tailored for different teams, positions it as a scalable compliance partner. Backed by top investors, Zango is expanding unabated.
Nevertheless, while India’s market poses GTM and mindset challenges, Zango’s Europe-first playbook aims to build credibility before scaling locally. But can it convince Indian financial giants to trust software as much as consultants?
The post Vedantu Charts A Comeback, Cracking The Egg Code & More appeared first on Inc42 Media.
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