UniScholars posted 2X rise in revenue in FY23, expenses follow

UniScholars, an online scholarship platform, reported a revenue of Rs 34.6 crore for FY23, reflecting a 2.6X increase from the previous fiscal year's Rs 13 crore. The Mumbai-based company, founded by Sayantan Biswas, focuses on providing comprehensive counseling and support for students aiming to study abroad, covering all stages from pre-departure to post-landing.

In FY23, UniScholars generated over Rs 34 crore from operations, maintaining its trend from FY22 when all its revenue came from operational activities. Despite its revenue growth, the startup experienced a significant rise in expenses, which surged 3.4X to Rs 73 crore by the end of March 2023. The primary expense drivers were advertising and promotional costs, while employee benefits and legal charges comprised over 34% and nearly 6% of the total expenditures, respectively.

UniScholars secured its first round of funding amounting to over Rs 38 crore, led by Suresh Pareek, with contributions from investors such as Vipul Jain, Auctus Capital Partners, and Shreeji Brothers. Following this investment, Emron Samuel Peres became the majority shareholder, with Amit Singh holding over 40% of the shares.

Despite the financial boost, UniScholars saw its losses widen nearly fivefold to Rs 38.3 crore in FY23, up from Rs 7 crore in FY22. This increase in losses was accompanied by a decline in key financial metrics, with EBITDA plummeting to -105.16% and ROCE also falling into negative territory at -105.16%.

The four-year-old startup’s financial challenges highlight the costs associated with scaling its operations and the significant investment in marketing and personnel necessary to support its growth trajectory in the competitive edtech sector.

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