upGrad losses shoot up 84 percent in the financial year 2020 even as revenue nearly doubles

Mumbai-based higher education edtech platform upGrad saw its loss increase 84 percent year-on-year (YoY), from Rs 43 crore in the fiscal year 2018-2019 (FY19) to Rs 79 crore in FY20 which ended March 31, 2020. During the same period, the company’s total revenue increased by 95 percent, from Rs 85 crore in FY19 to Rs 163 crore in FY20. However, the healthy increase in revenue was offset by an 87 percent growth in the company’s expenses, from Rs 129 crore in FY19 to Rs 241 crore, leading to an increase in the company’s net loss for the year. According to the company’s filings with the ministry of corporate affairs (MCA) sourced from Tofler, the increase in expenses was caused by spending surging across the board. The cost of materials consumed increased by 58 percent to Rs 32 crore while employee benefits expense rose by 89 percent to Rs 89.9 crore and other expenses, which includes the amount spent on rent, fuel, conveyance, advertising and legal services, almost doubled from 2019 to Rs 114.5 crore. The filings note that the company has accumulated losses and its net worth has eroded. “However, the financial statements have been prepared by the management on the basis of future business plans and financial support from its promoters,” read the filings. (Also Read: Indian edtech startups received over $2.22 billion funding in 2020 as compared to $553 million in 2019 )