Bengaluru-based upskilling platform Simplilearn is targeting an initial public offering (IPO) by the end of FY26, after establishing a track record of profitability, according to co-founder and chief operating officer, Kashyap Dalal. The Blackstone and GSV-backed company is currently evaluating both Indian and US markets for the potential listing.
While preparing for the IPO, Simplilearn’s immediate focus remains on establishing a strong foundation through sustained profitability. “Right now, our clear goal is to run a fully profitable business for a year and establish a strong foundation. Post that, the slated goal is an IPO,” Dalal said. “Currently, the India market seems the most lucrative. However, where we choose to list will depend on market conditions at the time of listing. What we are sure about, is that profitability and long term potential are key metrics for investors in both markets,” Dalal said. The company claims to have achieved profitability at a quarterly level in Q4 FY24 and expects to achieve full-year profitability in FY25. The edtech which has not disclosed its FY24 results as of yet, generated a revenue of Rs 700.6 crore in FY23, up from Rs 465.4 crore in FY22. However, its losses increased from Rs 178.9 crore in FY22 to Rs 244.2 crore in FY23, according to Tracxn.
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To turn this around, Simplilearn has restructured its operational model over the last year, decentralising responsibility for growth and profitability to business unit heads and mid-management. “We’ve moved from a model where CXOs owned the profit and loss to one where mid-management and business heads manage gross margin and contribution margin goals,” Dalal said. This “cultural shift”, Dalal said, allows for “faster corrective actions at the program level, enabling us to invest more in profitable programs while scaling back in areas with limited returns.” As a result, high-growth segments like AI, and cybersecurity continue to receive significant investment, while less profitable categories, like certain K-12 businesses, have been adjusted to reach sustainable levels. “Typically, losses occur when too much is invested in the wrong product. If we had tried to grow every product category at 40%, we would have lost money,” Dalal added. It also completely exited the study abroad category citing a lack of product market fit.
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