Indian higher-education platform CollegeDekho has reported a widened loss of ₹151 crore for the financial year ended March 2025, highlighting continued pressure on its business model amid a slowdown in revenue growth. The loss marks a noticeable increase compared to the ₹127 crore loss recorded in FY24, signalling another difficult year for the Gurugram-based edtech company.
Revenue Stagnates Despite Strong Market Presence
For FY25, CollegeDekho’s operating revenue stood at around ₹221.6 crore, showing only a marginal rise compared to the previous year. The near-flat growth reflects slowing momentum in student acquisition and institutional partnerships, especially at a time when the broader edtech sector in India is undergoing consolidation and recalibration.
CollegeDekho operates as a digital marketplace connecting students with colleges, offering services such as admission counselling, entrance exam preparation, application assistance, education loans, and study-abroad support. Over the years, the company claims to have assisted more than a million students and partnered with thousands of educational institutions across the country.
In addition to its core operations, CollegeDekho earned a small portion of its income from interest and other non-operating sources, taking its total income to nearly ₹228 crore in FY25. However, this additional income was not sufficient to offset the rising cost base.
Marketing and Promotion Drive Costs Higher
One of the key reasons behind the widening losses was the sustained increase in marketing and promotional expenditure. Advertising spend emerged as the single largest cost component, accounting for roughly one-third of total expenses. During FY25, promotional costs rose sharply to around ₹126 crore as the company continued to invest heavily in brand visibility and lead generation.
Employee benefit expenses, on the other hand, declined by nearly 25% to about ₹117 crore, indicating cost-cutting measures and possible workforce rationalisation. This figure still included non-cash expenses such as ESOP charges. While this reduction helped control some overheads, it was outweighed by rising spends in other areas.
Outsourcing and subcontracting costs doubled to over ₹31 crore, suggesting a greater reliance on external service providers. Additional expenses related to technology, administration, legal services, travel, rent, and bad-debt provisions further pushed total expenditure to nearly ₹379 crore in FY25.
Operational Efficiency Under Stress
The imbalance between revenue and expenditure continues to weigh heavily on CollegeDekho’s operational efficiency. Financial indicators such as EBITDA margin and return on capital employed weakened further during the year. On a unit-economics basis, the company spent significantly more than it earned for every rupee of operating income, underscoring the challenges in achieving profitability.
From a balance-sheet perspective, CollegeDekho ended FY25 with current assets of around ₹176 crore, including cash and bank balances of roughly ₹37 crore. While this provides some short-term liquidity cushion, sustained losses could put pressure on cash flows if revenue growth does not improve.
Competitive Pressure and Funding Outlook
The Indian education services space has become increasingly competitive, with several peers reporting better growth or moving closer to profitability by focusing on narrower segments or stronger monetisation models. Against this backdrop, CollegeDekho faces the task of reworking its strategy to balance growth with cost discipline.
So far, the company has raised over $68 million in funding through a mix of equity and debt. Its investor base includes well-known backers such as CarDekho and Winter Capital. During the recent period, CollegeDekho also secured debt funding, which has helped it manage near-term working capital needs.
As the edtech sector matures and investors place greater emphasis on sustainable unit economics, CollegeDekho’s FY25 performance serves as a reminder that scale alone is no longer enough. The coming year will be crucial for the company as it looks to improve margins, optimise spending, and reignite meaningful revenue growth in a demanding market environment.