Simplilearn looks to turn profitable by FY24, CEO says

Blackstone-backed Upskilling Platform Simplilearn Solutions Pvt. Ltd., said Wednesday that it anticipates reaching net profitability by FY24. A top executive spoke to VCCircle. 

“Last year, we lost money after a long time because we did a lot of growth experiments after Blackstone came on board. But our goal is to get to profitability as soon as we can,” said Krishna Kumar, founder and chief executive officer at Simplilearn, adding that this year the company may not be able to achieve profitability, but is optimistic about FY24.  

Simplilearn – a training destination for professional certification courses – reported a net loss of Rs 149.9 crore for FY22 against FY21’s loss of Rs 5.65 crore. In FY20, it reported a net profit in the region of Rs 1.4 million. 

Simplilearn’s consolidated revenue from operations grew about 41% in FY22 to Rs 479.7 crore against the Rs 340.9 crore in FY21.  

The company’s founder also said that Simplilearn aims to touch Rs 1,000 crore in consolidated revenue by end of FY23. He added that the upskilling player’s revenue growth was about 60% higher year-on-year for the 9MFY23 (April-November) period.

GSV Ventures led a Series E financing round that raised $45million (or Rs 366crore) for the company. Primary investments were made in the round, with no exit plans for existing shareholders.

Kumar claims that Simplilearn’s current valuation is around $500 million, after the series E round. 

Simplilearn plans to increase its presence in the existing markets through this fundraise. Simplilearn is currently active in the US, India and Singapore as well as Saudi Arabia, Dubai, Dubai, Thailand, and Saudi Arabia. Kumar stated that Simplilearn is looking to improve its product offerings and expand its training opportunities for all types of professionals, including those in the HR industry.  

The round also saw participation from Clal Insurance and DisruptAD, ADQ’s venture platform, as per a press statement.  

Blackstone, a global private equity company, has invested in the company. The fund infusion of approximately $250 million in the company’s July 2021 capital gave it a controlling stake. It was a secondary deal that allowed for exits of early investors Kalaari capital and Mayfield.  

“This funding by GSV, others came at a time when the industry is going through turmoil and stands as a testimony to our profitable growth,” said Kumar.  

Simplilearn, founded by Kumar in 2010, is based in San Francisco (California), Bengaluru, and provides work-ready training for individuals and companies worldwide.   

Kumar in an earlier conversation with VCCircle The company sees huge opportunities worldwide and will focus its efforts on the US, where it has witnessed an increase in online learning following the coronavirus pandemic.  

Avendus Capital was the financial advisor to Simplilearn, its shareholders and the transaction.