About Vedantu

The history of Vedantu dates back to 2011 when the co-founder Vamsi Krishna started an online test
preparation platform called Lakshya. The platform provided test preparation for engineering and
medical entrance exams in India. However, a Co-Founder, Vamsi Krishna soon realized that Lakshya
was not addressing the fundamental problem of Indian education, which is the lack of personalized
attention to each student. After he realized that Lakshya was not addressing the fundamental
problem, he decided to shut down Lakshya in 2014 and focus solely on Vedantu. Lakshya was
reportedly sold to MT Educare which is a subsidiary of ZeeLearn.

Now, Vedantu is an online tutoring platform based in India that was founded in 2014 by a group of
IITian friends - Vamsi Krishna, Pulkit Jain, Saurabh Saxena, and Anand Prakash. The idea for Vedantu
came about when the founders realized that many students in India face challenges in receiving
quality education due to factors such as a shortage of qualified teachers, long travel distances to
schools, and high tuition costs.

The founders wanted to create a platform that could address these challenges and provide access to
quality education to students across India, regardless of their location or economic background.
They developed a platform that uses live online classes to connect students with qualified teachers
in real-time, allowing them to receive personalized education from the comfort of their own homes.

Initially, Vedantu focused on providing tutoring services for students in grades 6-12 in subjects such
as math and science. However, over time, the platform expanded to include a wider range of
subjects and age groups, including test preparation for entrance exams such as JEE and NEET.

Today, Vedantu is one of the leading online tutoring platforms in India, with millions of students and
thousands of teachers using the platform to learn and teach. The company has also expanded its
reach beyond India, offering services to students in countries such as Indonesia, the UAE, and Saudi
Arabia. Let us see some more known facts about Vedantu

1. Funding: Vedantu has raised significant funding from investors, including Tiger Global, Accel
Partners, Omidyar Network, and GGV Capital. In 2020, the company raised $100 million in a
Series D funding round led by Coatue Management, taking its total funding to over $200
million. The detailed funding journey has been explained later in this document.
2. Adaptive Learning: Vedantu uses an adaptive learning model that leverages data and
analytics to provide personalized learning experiences to each student. The platform tracks
students' progress and identifies areas where they may need additional help, allowing
teachers to provide targeted assistance.
3. Teaching Quality: Vedantu has a rigorous screening process for its teachers, with only about
4% of applicants making it through the selection process. The platform also provides regular
training and support to its teachers to ensure they can deliver high-quality education to their
students.
4. Awards and Recognition: Vedantu has received numerous awards and recognition for its
innovative approach to education. In 2020, it was named the Best E-Learning Platform at the
Indian Education Awards, and the Best Online Tutoring Platform at the Global EdTech
Awards.
5. Social Impact: Vedantu is committed to making a positive social impact through education.
The company has launched several initiatives aimed at providing education to
underprivileged children, including the Vedantu Scholarship Program, which provides
 financial support to deserving students, and the Vedantu SuperKids Program, which offers
free education to children from low-income families.

The Journey over the years:

 2014: Vedantu was founded in Bangalore, India. The company began by offering live online
tutoring services to students in grades 6-12 in India.
 2015: Vedantu launched its Doubt Solving app, which enabled students to get their doubts
cleared instantly by subject matter experts.
 2016: The company expanded its services to include test preparation for engineering and
medical entrance exams in India.
 2017: Vedantu raised $5 million in a Series A funding round led by Accel Partners and Tiger
Global Management. The company also launched its Doubt Solving App in Hindi, making it
accessible to a wider audience in India.
 2018: Vedantu introduced its Master Teacher program, which aimed to attract top teachers from
across India to teach on the platform. The company also expanded its services to include live
online classes for students in grades 4 and 5.
 2019: Vedantu launched its proprietary technology called WAVE, which stands for Whiteboard
Audio Video Environment. WAVE allowed students and teachers to interact in real-time, making
the online learning experience more immersive. Vedantu also raised $42 million in a Series C
funding round led by Tiger Global Management and WestBridge Capital.
 2020: The COVID-19 pandemic led to a surge in demand for online education, and Vedantu was
no exception. The company saw a 220% increase in the number of students on its platform
during the pandemic. Vedantu also launched a new platform called Vedantu Superkids, which
offers live online classes for children in grades 1-3.
 2021: Vedantu raised $100 million in a Series D funding round led by Coatue Management and
featuring participation from existing investors like Tiger Global Management and GGV Capital.
The company also acquired Instasolv, a startup that provides doubt-solving services to students
in India.
 As of 2023, Vedantu has over 2 million students on its platform and employs over 10,000
teachers. The company offers a wide range of online courses and programs, including live
classes, test preparation, and doubt-solving services. Vedantu has become one of the leading
edtech startups in India, and its success has inspired other entrepreneurs to explore the field of
online education.

SWOT Analysis of Vedantu

1. Strengths:
 Expert Tutors: Vedantu employs highly experienced and skilled teachers who are
experts in their respective subjects. This ensures that students receive quality
education and can clear their doubts with ease.
 Frequent Innovation: Vedantu uses a variety of innovative teaching methods and
frequently updates its technology infrastructure to improve the user experience.
This ensures that Vedantu stays ahead of the curve in the highly competitive online
education space.
 Broader Curriculum: Vedantu offers a wide range of courses across different
subjects and levels, including CBSE, ICSE, and International Boards, as well as
competitive exams like JEE and NEET. This makes it a one-stop-shop for students, as
they can find all the resources, they need to prepare for their exams in one place.
 2. Weaknesses:
 Negative Reviews: Negative reviews can undermine a company's reputation and
discourage potential customers from using its services.
 Poor Employee Retention: High turnover of employees can disrupt business
operations, reduce productivity, and increase hiring and training costs.
 Cold Callings: Cold calling is often seen as an intrusive and aggressive marketing
tactic that may be off-putting to potential customers and harm the company's
reputation.
3. Opportunities:
 Expansion to Rural Areas: Expanding into rural areas can open up new markets and
increase revenue streams, as there may be a demand for quality education in those
areas that is currently not being met.
 Collaboration With Schools: Collaborating with schools can lead to partnerships and
opportunities for Vedantu to provide its services to a larger audience, such as by
providing online tutoring or supplemental instruction to students.
 Diversification of Courses: Diversifying its course offerings can help Vedantu appeal
to a wider range of students and meet the needs of different educational levels,
subjects, and interests, potentially leading to increased revenue and market share.
4. Threats:
 Competitors: Increased competition in the online education space can lead to
decreased market share and pricing pressure for Vedantu.
 Changing Government Regulations: Changes in government regulations can impact
Vedantu's ability to operate, potentially leading to increased costs or restrictions
that could limit its growth or disrupt its business model.
 Economic Downturn: Economic downturns can impact consumer spending and
decrease demand for Vedantu's services, as well as potentially leading to funding
challenges or decreased investment opportunities.

Vedantu’s Business Model Canvas

Key Partners

 Content providers: Vedantu partners with content providers to create quality study
materials for their platform.
 Teachers and educators: Vedantu partners with teachers and educators who are willing to
teach students online.
 Payment gateways: Vedantu partners with payment gateways to facilitate secure and
convenient online payments for its services.
 Technology partners: Vedantu partners with technology providers to build and maintain its
online platform.

Key Activities

 Creating quality educational content: Vedantu creates and curates high-quality study
materials, which include video lectures, practice papers, and interactive quizzes.
 Providing an online platform: Vedantu provides an online platform that connects students
with teachers and facilitates real-time communication and learning.
 Marketing and brand building: Vedantu invests in marketing and brand building activities to
increase its visibility and attract more students to its platform.
  Hiring and training teachers: Vedantu hires and trains teachers to deliver quality education
and provide a positive learning experience to students.
 Providing customer support: Vedantu provides customer support to resolve queries and
address any concerns raised by students.

Key Resources

 Online platform: Vedantu's online platform is its key resource, which facilitates real-time
communication and learning between students and teachers.
 Educational content: Vedantu's educational content is another key resource that helps
students prepare for exams and improve their academic performance.
 Teachers and educators: Vedantu's teachers and educators are its key resources who deliver
quality education and provide a positive learning experience to students.
 Technology: Vedantu's technology infrastructure, including hardware and software, is a key
resource that helps it provide seamless online education services.

Value Proposition

 Personalized learning: Vedantu provides personalized learning experiences to students by

matching them with teachers who are experts in their subjects and by adapting its content
to individual student needs.
 Convenience and flexibility: Vedantu provide convenient and flexible learning experiences
to students by allowing them to learn at their own pace, from the comfort of their homes,
and at times that are convenient for them.
 Quality education: Vedantu provides high-quality education by hiring qualified and
experienced teachers, curating quality study materials, and delivering interactive and
engaging learning experiences.

Customer Segments

 School students: Vedantu targets school students, from grades 6-12, who are preparing for
exams and looking to improve their academic performance.
 Competitive exam aspirants: Vedantu also targets students who are preparing for
competitive exams, such as JEE, NEET, and CAT, and are looking for quality study materials
and guidance.
 Working professionals: Vedantu targets working professionals who are looking to upskill
and improve their job prospects by learning new skills.

Channels

 Online advertising: Vedantu uses online advertising channels, such as Google Ads and
Facebook Ads, to reach potential customers and promote its services.
 Referral marketing: Vedantu encourages its existing customers to refer their friends and
family to its platform, by offering them discounts and other incentives.
 Content marketing: Vedantu uses content marketing, such as blog posts and social media
posts, to educate potential customers about the benefits of online education and its
services.
 Partnerships: Vedantu partners with schools and educational institutions to promote its
services and reach more students.
Customer Relationships

 Personalized support: Vedantu provides personalized support to students, by assigning

dedicated academic mentors who help them navigate the platform and resolve any issues
they face.
 Community building: Vedantu fosters a sense of community among its students and
teachers, by facilitating communication and collaboration between them.
 Feedback gathering: Vedantu regularly collects feedback from its students to improve its
services and address any issues they face.

Revenue Streams

 Subscription fees: Vedantu charges subscription fees from students who want access to its
study materials and online classes.
 Commission fees: Vedantu charges a commission fee from teachers for the classes they
conduct on its platform.
 Advertising fees: Vedantu generates revenue by displaying ads on its platform.

Cost Structure

 Technology costs: Vedantu incurs significant costs on technology infrastructure, including

servers, software, and website development.
 Content creation costs: Vedantu invests in creating and curating quality study materials,
including video lectures, practice papers, and interactive quizzes.
 Teacher salaries and incentives: Vedantu incurs costs on hiring and training teachers and
providing them with incentives and salaries.
 Marketing and advertising costs: Vedantu invests in marketing and advertising activities to
increase its visibility and attract more students to its platform.
 Operational costs: Vedantu incurs costs on managing day-to-day operations, such as
customer support, payment processing, and platform maintenance.

Marketing Strategy of Vedantu

Vedantu’s marketing strategy focuses on building a strong online presence, targeting specific
audience segments, and providing value-added services to its customers. It is designed to build
brand awareness, attract new customers, and retain existing ones through a combination of digital
marketing, targeted advertising, content marketing, and value-added services.

Here are some of the key elements of Vedantu's marketing strategy:

 Digital Marketing: Vedantu heavily relies on digital marketing to reach its target audience. It
uses social media, search engine optimization (SEO), and paid advertising to promote its
services.
 Content Marketing: Vedantu creates high-quality educational content, including blogs,
videos, and webinars, to engage with its audience and establish itself as a thought leader in
the education industry.
 Targeted Advertising: Vedantu targets specific audience segments, such as students,
parents, and teachers, with customized advertising campaigns that resonate with their
needs and interests.
  Referral Marketing: Vedantu encourages its existing customers to refer their friends and
family to the platform through its referral program, which offers discounts and other
incentives.
 Value-Added Services: Vedantu offers value-added services, such as personalized tutoring,
test preparation, and career counseling, to differentiate itself from competitors and provide
additional benefits to its customers.

Future Growth Prospects of Vedantu

The future growth prospects of Vedantu look promising based on the following reasons:
 Increasing demand for online education: With the COVID-19 pandemic, the
demand for online education has increased significantly. Even after the pandemic,
many students and parents are likely to continue to prefer online learning, which
will benefit platforms like Vedantu.
 Expansion into new markets: Vedantu has already expanded into several new
markets, including the Middle East, Southeast Asia, and the United States. The
company is likely to continue to expand into new markets, which will help to drive
its growth.
 Diversification of product offerings: Vedantu has already diversified its product
offerings beyond live online tutoring to include self-paced learning modules and test
preparation courses. The company is likely to continue to diversify its product
offerings to meet the needs of different types of learners.
 Partnerships and Collaborations:
 Byju’s: Vedantu has partnered with Byju’s to expand their reach and provide
a wider range of services to students. Vedantu offers its live online tutoring
services on the Byju's platform, while Byju's provides its content and
technology to Vedantu.
 Mastercard: Vedantu has partnered with Mastercard to offer a unique
program called "MyChapter" that provides personalized learning
experiences to students in India through Mastercard's payment technology.
Students can access live online classes and learning resources using a virtual
debit card provided by Mastercard.
 NCERT: Vedantu has collaborated with the National Council of Educational
Research and Training (NCERT) to offer free live classes to students across
India. The collaboration aims to bridge the learning gap caused by the
COVID-19 pandemic and provide quality education to students from remote
areas.
 KVS: Vedantu has partnered with Kendriya Vidyalaya Sangathan (KVS) to
provide live online classes to KVS students. The collaboration aims to
enhance the quality of education provided to KVS students and make
learning accessible to all.
 Experienced management team: Vedantu has an experienced management team.
The co-founders are IITians themselves and work in their own specialisation. Apart
from that the teachers have to go through a rigorous selection process, that takes
upto a week’s time to complete. The teachers who get selected are expert in their
respective fields and a perfectly capable of shaping the student’s future in the right
direction.
In 2018, Vedantu had around 40,000 students registered on its platform. By the end of 2019, this
number had grown to around 150,000 students. In 2020, Vedantu's customer base grew even
further due to the COVID-19 pandemic, as more students turned to online learning. Vedantu
reported that it had more than 1 million students on its platform by the end of 2020. The sharp
increase in the customer base shows that the organization is headed in the right direction. Although
it is still making losses but this is just the beginning and the signs show that the company has the
potential to turn around and start making profits.

Strategy Map of Vedantu

1. Financial Perspective:
 Increase revenue through growing customer base and expanding product offerings.
 Increase profitability by improving operational efficiency and reducing costs.
 Invest in research and development to create innovative products and services that
meet the changing needs of customers.

2. Customer Perspective:
 Provide high-quality online education services that meet the diverse learning needs of
students.
 Build strong relationships with customers by delivering personalized services and
addressing their concerns promptly.
 Enhance customer experience by providing a seamless, intuitive, and user-friendly
platform.

3. Internal Processes Perspective:

 Develop and implement effective marketing and sales strategies to attract and retain
customers.
 Optimize technology infrastructure to support online learning and improve operational
efficiency.
 Foster a culture of continuous improvement by implementing best practices and
adopting new technologies.

4. Learning and Growth Perspective:

 Develop and retain a highly skilled and motivated workforce.
 Provide ongoing training and development opportunities to enhance employees' skills
and knowledge.
 Foster a culture of innovation by encouraging employees to explore new ideas and
experiment with new approaches.

Overall, the strategy map for Vedantu would focus on delivering high-quality, personalized online
education services that meet the evolving needs of customers while maintaining operational
efficiency and profitability. It would prioritize investing in research and development, optimizing
technology infrastructure, and fostering a culture of innovation and continuous improvement.

ERRC Grid for Vedantu

1. Eliminate:
 Eliminate services that are not profitable or don't align with Vedantu's overall strategy
 Eliminate low-performing marketing channels
2. Reduce:
  Reduce operational costs by streamlining processes and improving efficiency
 Reduce the time and resources required to create content by leveraging technology and
automation

3. Raise:
 Raise the quality of education by partnering with academic institutions & industry
experts to create high-quality content
 Raise brand awareness and credibility by enhancing the marketing strategies
4. Create:
 Create new and innovative courses that meet the evolving needs of students.
 Create a community of engaged learners by offering interactive learning to facilitating
peer-to-peer learning.

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