Classplus, a B2B edtech platform backed by Tiger Global and Peak XV Partners (formerly Sequoia Capital), is anticipating a significant business growth of 65% in FY24, with revenues expected to surpass Rs 250 crore. The company credits this robust growth to increasing traction from content creators and educators who are leveraging the platform to expand their online coaching businesses.
Mukul Rustagi, Co-founder and CEO of Classplus highlighted the company’s strategic focus on operational efficiency as it edges closer to operational profitability. This focus comes at a crucial time when the broader edtech sector is grappling with financial challenges and questions surrounding business viability.
“We expect revenues to be Rs 250 crore once audited results are announced for FY24, and this will be a 65% growth from Rs 149 crore over the previous year. Additionally, we made strong strides towards profitability, bringing down losses by 70% to about Rs 80 crore in FY24,” Rustagi stated.
Classplus has positioned itself as a critical enabler for content creators and educators, helping them monetise their social media presence and scale their online coaching businesses. The platform’s impact is evident, with creators conducting over two lakh live classes each month and reaching more than eight crore students across 4,500 cities and towns in India and abroad through Classplus-powered apps.
“Our success is closely tied to our content creator partners. These creators have multiplied their earnings 5-6 times by extending their reach beyond local geographies,” Rustagi noted.
Since its inception, Classplus has raised approximately $150 million across seven funding rounds, attracting investments from prominent global investors such as Tiger Global, AWI, Blume Ventures, GSV Ventures, RTP Global, Sequoia Capital India’s Surge, and Times Internet. The company’s valuation in its latest funding round was estimated at around $565 million, with $65 million raised in the Series D round.
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“As we inch closer to profitability, most of the cash raised in our last round is still with us,” Rustagi added, underscoring the company’s prudent financial management.
Classplus has also diversified its offerings by providing AI-enabled marketing tools, campaign analytics, book publishing capabilities, merchandise launches, paid one-on-one sessions, and a no-code website builder with a wide array of templates for content creators.
In recent years, the platform has witnessed a significant rise in the creator economy, with a diverse range of professionals, including fitness instructors, programmers, language coaches, chefs, and yoga trainers, utilising Classplus to disrupt the way they share their expertise online. Rustagi noted that the non-academic category now contributes over 30% to the business, with the earnings of non-academic creators soaring 2.5 times compared to the previous year.
“Around 80% of Classplus creators are from tier 2 and beyond cities, making a substantial impact on the lives of students in remote tier III and tier IV towns and villages who previously lacked access to quality education,” Rustagi emphasised, highlighting the platform’s role in democratising education across India.
