**upGrad Reports Reduced Losses and Revenue Growth in FY25**
Temasek-backed edtech giant upGrad has reported a significant reduction in losses and modest revenue growth for the fiscal year 2025 (FY25), according to the company’s statutory disclosures. Consolidated revenue increased by 5.5%, reaching ₹1,569.3 crore, up from ₹1,487.6 crore in FY24. This growth is attributed to a substantial decrease in expenditures as the company shifts its focus towards profitability, moving away from its previously stated goal of a public market listing around mid-2026.
The net loss for FY25 decreased by 51%, amounting to ₹273.7 crore compared to ₹559.9 crore in the previous fiscal year. upGrad is also making strides towards operational profitability, with its consolidated operating loss (Ebitda) dropping to ₹65.4 crore, a nearly 81% reduction from ₹344 crore in FY24. In an email response, CEO Ronnie Screwvala noted that upGrad includes other income in its Ebitda calculations under Ind-AS norms and claimed that the company has already achieved operational profitability.
This financial progress comes as upGrad actively seeks large acquisitions in the test preparation and K-12 sectors. The company has expressed interest in acquiring Byju’s parent company, Think & Learn, and is reportedly in discussions to purchase Unacademy in a share-swap deal valued between $300 million and $400 million.
During FY25, upGrad underwent significant leadership changes, including the departure of Mayank Kumar as managing director to pursue his own venture. The company also secured $60 million in Series C funding from Temasek, bringing its total funding to approximately $329 million, with contributions from other investors such as EvolutionX, IFC, and 360 One.
Total consolidated expenses fell by 8% to ₹1,942.6 crore in FY25, down from ₹2,112.3 crore in FY24. The most significant reduction was seen in “other expenses,” which decreased from ₹1,088.8 crore to ₹930.2 crore. Employee costs, typically the largest expense in the sector, also declined to ₹703.7 crore from ₹741.3 crore the previous year.
On a standalone basis, upGrad reported a revenue growth of 5.6%, with standalone revenue rising to ₹1,074.5 crore from ₹1,018 crore in FY24. The standalone net loss also narrowed to ₹333.2 crore, down from ₹473.5 crore the previous year. However, finance costs continue to impact profitability, with interest expenses increasing to ₹127.2 crore on a consolidated basis, compared to ₹86.2 crore in FY24. The company clarified that the rise in interest expenses is primarily due to lease-related Ind-AS entries rather than increased borrowing, with ₹69 crore of the interest cost in FY25 attributed to lease accounting.
**FAQ**
**What were upGrad’s financial highlights for FY25?**
In FY25, upGrad reported a 5.5% increase in consolidated revenue to ₹1,569.3 crore, a 51% reduction in net loss to ₹273.7 crore, and a significant decrease in operating loss, indicating a shift towards profitability.
