Simplilearn shuts fresher upskilling, study abroad divisions in profitability bid
Simplilearn, a provider of online professional certification courses, has made drastic changes to its business model. The company has shut its fresher upskilling and study abroad divisions which has helped it cut losses by 75% in FY24. The strategic move is part of a larger plan to focus on established sectors like reskilling and B2B enterprise verticals.
CEO's insights on strategic shift
Krishna Kumar, founder and CEO of Simplilearn, stressed on having a strong product rather than spending. He said, "If your product is not strong and you spend more money, it might give you some numbers, but it's not a sustainable number." The company intends to focus on the areas where it has demonstrated expertise while exiting those where it is facing stiff competition.
Simplilearn's focus and financial performance
Now, Simplilearn is turning its attention toward skills in artificial intelligence (AI) and cybersecurity, expecting high growth in these segments. In FY2024, Simplilearn reported a revenue of ₹773 crore, up approximately 13% from ₹684 crore in the previous FY. Even though, it posted slower growth, the company was able to cut losses by nearly 75% to ₹244 crore. Kumar said he is confident about the company's profitability by the next fiscal year with improved efficiency and tighter control on spending.
Simplilearn's global reach and future plans
Founded in 2010, Simplilearn provides digital upskilling certifications to learners across the globe. The company hosts over 1,500 live online classes every month for over eight million learners. India accounts for 35% of Simplilearn's total revenue, while the US makes up for nearly 40%. The rest of the revenue comes from regions such as Saudi Arabia and the UK.
IPO plans and funding history
In July 2021, Blackstone had picked a controlling stake in Simplilearn with a $250 million fund infusion. The deal saw early investors like Kalaari Capital and Mayfield exit. Going forward, Simplilearn is eyeing an IPO and wants to stay away from equity fundraising. Kumar said, "We are at a stage where we want to be a comfortably growing, publicly listed company at some point."
