Mumbai, November 29, 2023: upGrad, one of Asia's leading integrated learning and workforce development companies, reported significant financial growth in FY23. The company, in line with its long-term listing plans, transitioned to the widely accepted IndAS accounting standard. Despite a Gross Revenue of INR 1530 Crore, the adjusted revenue under IndAS stood at INR 1,194 Crore, reflecting a remarkable 96% increase from the previous fiscal year's INR 608 Crore.
The adjusted EBITDA loss remained consistent at INR 558 Crore, mirroring the figures from the previous year. However, non-cash expenses in FY23, including an accelerated goodwill write-down of INR 410 Crore and depreciation and amortization costs of INR 140 Crore, contributed to a total PAT loss of INR 1142 Crore, up from INR 648 Crore in the preceding financial year.
Key changes in major cost items highlighted a significant reduction in Marketing costs to 19% (INR 371 Crore) of total costs compared to the previous year's 33% (INR 403 Crore). Employee costs remained the highest contributor at 36%, totaling INR 707 Crore, which also included non-cash costs for ESOP accounting. Direct costs increased to INR 382 Crore from INR 211 Crore in the previous year, driven by investments in content development, content delivery, and university fees aligned with revenue growth.
upGrad, distinguishing itself as one of the few new economy companies without significant layoffs in the last 12-18 months, reported a learner base surpassing 10 million, with paid learners growing by 54% compared to the previous year. The enterprise arm expanded its global footprint, projecting a higher share of international revenue at 21% in FY24, up from 10% in FY23. The company maintained a strong focus on delivering outcomes and placements, facilitating over 55,000 transitions into better job opportunities in the last fiscal year.
Mayank Kumar, Co-founder & MD of upGrad, expressed confidence in the company's trajectory, stating, "We are in a very strong place as we build upGrad for the world, out of India. While we respect profitable growth, we aim to strike the right balance as we continue to be in investment mode with a strong eye on the long term." He highlighted the company's robust financial position, with close to 80% gross margins, zero net debt, and a strong Return on Capital Employed (ROCE) ratio. The company is on track to achieve operational profitability in the second half of FY24 and beyond, exploring organic, linear, and non-linear opportunities for growth in Asia and globally.