CollegeDekho, a Gurugram-based higher-education marketplace, reported a widened loss of ₹151 crore for the year ended March 2025 as revenue growth slowed and operating costs rose, underlining mounting pressure on its path to profitability and the need for tighter cost discipline amid a competitive Indian edtech landscape.
Revenue growth stalls as losses widen
For FY25, CollegeDekho’s operating revenue was approximately ₹221.6 crore, a marginal increase year-on-year that signals stagnating traction in student acquisition and institutional tie-ups. Total income, including interest and other non-operating receipts, stood at nearly ₹228 crore, still insufficient to cover the company’s rising cost base.
Business model and service mix
CollegeDekho operates a digital marketplace connecting students with colleges and provides services such as admission counselling, entrance exam coaching, application assistance, education loans, and study‑abroad support. The company says it has helped over a million students and partnered with thousands of institutions across India, but scaling monetisation of these services has proved challenging.
Cost pressures driven by marketing and outsourcing
The company’s FY25 expenditure rose to nearly ₹379 crore, driven largely by a sharp increase in marketing and promotional spend. Advertising emerged as the single largest cost line, at roughly one-third of total expenses, with promotional outlays climbing to about ₹126 crore as CollegeDekho invested heavily in brand visibility and lead generation.
Employee benefit expenses fell by nearly 25% to about ₹117 crore, reflecting cost-control measures and likely workforce rationalisation; this figure continued to include non-cash items such as ESOP charges. In contrast, outsourcing and subcontracting costs more than doubled to over ₹31 crore, indicating greater reliance on third‑party vendors. Additional costs related to technology, administration, legal services, travel, rent and bad‑debt provisions further increased the overall spend.
Operational efficiency and balance‑sheet position
Financial metrics show deteriorating operational efficiency: EBITDA margins and return on capital employed weakened during the year, and unit economics remained unfavorable, with the company spending materially more than it earned for each rupee of operating income. On the balance sheet, CollegeDekho finished FY25 with current assets of about ₹176 crore, including cash and bank balances near ₹37 crore, offering a limited short‑term liquidity buffer.
Competitive environment and funding background
The Indian education services market has become increasingly competitive, with several peers achieving stronger growth or nearing profitability by focusing on niche segments or more effective monetisation strategies. Against this backdrop, CollegeDekho faces pressure to recalibrate strategy to balance growth with tighter cost control and improved unit economics.
To date, the company has raised over $68 million through a mix of equity and debt, with investors that include CarDekho and Winter Capital. Recent debt financing has helped address short‑term working capital needs, but sustained losses will heighten scrutiny of its funding and operating model as investor focus shifts to sustainable margins.
