iScholar: Business Model & Financial Overview

In the rapidly evolving landscape of education, iScholar has emerged as a game-changer, offering a unique blend of online and offline learning solutions. Established as a technology-driven education platform, iScholar provides high-quality coaching programs for competitive exams like JEE and NEET and skill enhancement courses.

With a mission to make education accessible and effective, iScholar integrates cutting-edge technology with expert faculty to deliver personalized learning experiences to students across India and beyond. Let's understand their business model and financials.

Business Model Of iScholar

iScholar operates on a scalable and innovative business model that caters to diverse learning needs. The company employs a BlendedED model approach, combining live virtual classes with self-paced learning. This model ensures that students benefit from interactive lessons while having access to recorded content for revision.

The company’s revenue streams are diversified, comprising the following:

A) Offline Learning Centers

With offline centres in major cities like Mumbai, Delhi, Lucknow, and Kota, iScholar has successfully built a strong presence in the competitive education sector. Powered by i30 Digital Knowledge infrastructure students have access to all recorded content.

B) Digital Learning Programs

For JEE, NEET, CA, MIT and other courses from India’s top 15 faculties. This is on-demand differential 3D recorded content.

C) B2B2C School Partnerships

Introducing MIT Entrepreneurship program along with Language Skills to make K-12 students to be 21st Century ready. Currently, in advanced discussion for an agreement with a large education group with 200+ schools in India.

D) B2G Partnerships

This includes partnering with the Government to implement digital classrooms and providing language skills and STEM courses. Introducing our flagship MIT Zero2Maker & Zero2Entrepreneur Programs.

Additionally, strategic acquisitions and partnerships further strengthen its expansion plans, making it a formidable player in the industry.

Achievements & Milestones of iScholar

iScholar has achieved several notable milestones in its journey toward revolutionizing education:

• Expansion of Franchise Network: Over 100+ franchisees signed up between 2020 and 2022.

• Innovative Partnerships: Collaborated with MIT (Massachusetts Institute of Technology) for exclusive programs, including the Ratan Tata-funded initiative.

• Pioneering Virtual Schooling: The first private company in India to receive a license to operate a virtual school.

• International Expansion: Set to launch operations in the UAE and Saudi Arabia, along with acquisitions in Singapore, Australia, New Zealand, and the UK.

iScholar is backed by actor and philanthropist Vivek Oberoi, who serves as the Co-founder & Chief Strategy Officer. His association enhances brand credibility and visibility, while his strategic involvement supports iScholar’s expansion and marketing initiatives.

Financial Overview of iScholar

1. Strong Revenue Growth

iScholar has demonstrated significant revenue growth, with Total Income increasing from ₹5.12 crores in FY 2022 to ₹46.02 crores in FY 2024, indicating a strong market demand for its services. The 9X revenue jump in just two years suggests successful expansion strategies and improved operational efficiency.

2. Profitability Turnaround

The company moved from a negative EBITDA of ₹(8.43) crores in FY 2023 to a positive ₹10.81 crores in FY 2024, marking a substantial improvement. Similarly, PAT (Profit After Tax) surged from a loss of ₹(8.56) crores in FY 2023 to a profit of ₹9.49 crores in FY 2024, showcasing effective cost management and revenue scaling.

3. Efficient Cost Management

While Total Expenses have risen in line with revenue growth, the proportionate increase in EBIT (Earnings Before Interest & Taxes) from ₹2.15 crores in FY 2022 to ₹10.04 crores in FY 2024 suggests that iScholar is managing operational costs well. The decline in Depreciation & Amortization (₹1.47 crores in Sep 2024 vs ₹0.77 crores in FY 2024) further indicates asset efficiency.

4. Increased Taxation Reflects Profitability

The company’s Tax Expense has moved from a negative in FY 2023 (-₹0.04 crores) to ₹1.90 crores in Sep 2024, reflecting improved earnings. This shift suggests that iScholar has transitioned into a more sustainable, taxable entity, reinforcing long-term financial stability.

5. Improved Debt Handling

Interest expenses have remained relatively low, increasing from ₹0.04 crores in FY 2022 to ₹0.88 crores in Sep 2024, indicating a controlled debt level. The steady increase in EBT (Earnings Before Tax) from ₹2.11 crores in FY 2022 to ₹9.55 crores in FY 2024 suggests that the company is leveraging its earnings effectively without excessive financial burden.

Funding Raised Fueling Expansion

iScholar has strategically raised funds to support its aggressive expansion plans and technological advancements. According to Tracxn, the company has secured USD 1.2 Million. This financial backing has enabled iScholar to:

• Acquire Catalyser Eduventures (India) Private Limited and Singapore Education Academy (Asia Pacific) Private Limited, strengthening its position in the ed-tech and blended learning segments.

• Signed seven major deals, including one 100% acquisition and six majority stake acquisitions (60%).

• Invest in AI-driven learning technologies to enhance student engagement and personalized education experiences.

The Future Of iScholar

iScholar is poised for continued success in the education sector. By leveraging a BlendedED model, strategic partnerships, and a strong financial foundation, the company can capitalize on the growing demand for online and offline learning solutions. As India's first licensed virtual school, iScholar is bridging the education gap and setting new benchmarks for digital learning.