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Vedantu

Category: Informal education
Company: Vedantu Innovations Pvt Ltd
Brand Origin: Bangalore
Established Year: 2014
Business Model: FOFO
ROI: 18-24 Months
Area: 3000 Sq.Ft
Investment: 1.4 Crore
Franchise Outlets: 40
Google Rating: 4.1/5

About Us

Vedantu is the leader in K-12 LIVE tutoring space. Each month, over 35 million users’ access Vedantu through its app and web for free. Its Youtube channel gets 65 million views, the highest in the K-12 segment for any educational company in India. Students also access Vedantu through its dedicated Channels on Airtel TV and TATA Sky. Vedantu catered to over 200,000 paying students last year, a 300% growth over the previous year. This growth was accompanied by a revenue increase of 4.5x over the previous year, making it the fastest growing online education company in this space and the overall second-largest company in K-12 in terms of revenue and number of students.

Challenging the status quo in India’s K-12 tutoring space, Vedantu was the first company to offer LIVE online classes in 2014 and is credited with creating the category. It has continued to be a pioneer in the space with several first time innovations that include WAVE, its proprietary LIVE teaching platform, and the 2-teacher model. Both these innovations are playing a big role in improving student outcomes for the company. Some of the company's innovations have been granted patents in the US.

Today, Vedantu offers tutoring courses to young students from 3 years old to 18 years old, as well as preparation for competitive exams such as IIT-JEE, NEET, Commerce, CBSE, ICSE, and All state board.

Ownership Type PVT. LTD
License Type Not Required
Main Product JEE-Main, JEE-Advanced, NEET, technology aided academic facility, Academic (1-12), CBSE, ICSE, State exams such as Maharashtra boards
Logo Trademark Yes
Country/Region Bangalore, India
Business Automation Semi, Fully
Business Involvement Part Time , Fulltime
GST No 29AADCV8346G1ZX

Franchise Model

  Tier 1 Tier 2 Tier 3
Area 3750 Sqft 3500 Sqft 3000Sqft
Interior( including furniture & all set up)/ Sqft INR 1500 INR 1500 INR 1500
Franchise Fee INR 30 Lakhs INR 25 Lakhs INR 25 Lakhs
Total Capex INR 8.62 Lakhs INR 7.75 Lakhs INR 70 Lakhs
Working capital( 3 months) INR 50 Lakhs INR 45 Lakhs INR 30 Lakhs
Total Investment INR 1,36 CR INR 1.22 CR INR 1 CR
Brand Royalty( on total Revenue) 25% 25% 25%
No. Of Educators 5 5 4
No. of non- academic staff 10 10 10

 

Products / Services

1.1-  Academic (1-12)
1.2- IIT-JEE
1.3- NEET
1.4- CBSE
1.5- ICSE
1.6- All State board  exams . 

Agreement & Training

Training Non- academic Staff Training & Academic staff
Agreements 5 years
Agreement Renewable 25% 0f FranchiseFee [depending on leverage we give the partner at the time of setting up, they have to pay 25% of that only ]

Support / Responsibility

1.1- Academic Content - Books + Notes +Tests
1.2- Teacher Hiring
1.3- Teacher Training and Day-to-Day Evaluation
1.4-Pedagogy and Academic planning
1.5- Learner Management System for attendance tracking and Learner communication
1.6- Additional access to Vedantu online subscription to all Learners
1.7- Non-academic Staff Hiring
1.8- Academic Staff Training
1.9- Daily Cadence and Ops Support with Sales team
1.10- Infra team help to establishing center and branding the setup
1.11- Access to Centralised tool for efficient operations
1.12- Insider Sales Support via Telesales team

 

Marketing

1.1- Performance Marketing and Digital Marketing
1.2- National Brand marketing campaigns (print/ digital)
1.3- Promotion of the Centre through Vedantu Teachers on the Vedantu Platform
1.4- Access to Vedantu User base for that city
1.5- New Lead generation through various Scholarship Tests like MVSAT, SST and DST
1.6- One half page print advertisement in a local newspaper at the time of Centre launch
1.7- Seminar and sessions

Cost Bifurcation

Monthly Working Capital   

     
  Tier 1 Tier 2 Tier3
Rent INR 2.75 Lakhs INR 2.25 Lakhs INR 1.35 Lakhs
Salary INR 11.22 Lakhs INR 11.10 Lakhs INR 7.06 Lakhs
Marketing INR 1.41 Lakhs INR 1.13 Lakhs INR 74.16 K
Maintainace INR 37.5 K INR 30 K INR 22.50 K
Electricity INR 75 K INR 60 K INR 45 K
Miscellaneous INR 15 K INR 15 K INR 15 K
Total INR 16.65 Lakhs INR 15.53 Lakhs INR 9.97 Lakhs

FAQs

1. What is the total area required to start the Vedantu franchise?
The total area required to set up the Vedantu franchise is around 2500-4000 Sq.Ft. It varies by the number of students expected to on an average to take admission in that particular city.
2. Do you have any law regarding the term agreement?
Yes, we do have a term agreement period of 5 years.
3. What is the staff counts of Vedantu’s brand for each franchise?
If the student’s headcount, let’s say is 500, then in such case the number of teachers
required will be - 5, Academic Op- 1, Center Head-1, Business development executive-2, Academic Counselors - 2", Tele Callers- 2, Housekeeping-2. So, total 15 staffs for 500 students. However, these numbers may differ, and you may take it as approximately 12-15.
4. Can you describe about the working capital?
Vedantu’s working capital consists for
1.1 Marketing expenses
1.2 Salary of the teaching staffs and non-teaching staffs.
1.3 Electricity and other miscellaneous
1.4 Rentals.
Approximately the amount of working capital required will be around 20L-25L INR.
5. Which is the most potential duration in the education sector for scaling up admissions of students?
The time period when education business sees a spike in admission is during the months of November-December - the admission season starts, January, February, March - the admission peaks, April, May and June - second wave of admission will happen, July - admission season resides.
6. What is the break-even point of Vedantu’s franchise business, a no loss no profit point where one need not invest even 25L?
The break-even point is 16-24 months. It depends on various factors like market size, marketing strategies, franchise and franchisor joint efforts etc.

City

Brand Origin

Bangalore

Expansion City

Bhopal, Gwalior, Indore, Ratlam, Rewa, Imphal East, Imphal West, Patna, Bilaspur, Raipur, Gandhinagar, Rajkot, Surat, Vadodara, Faridabad District, Hisar, Panipat, Rewari District, Rohtak, Sonipat, Shimla, Jammu, Bokaro, Dhanbad, Belgaum, Bellary, Dharwad, Mysore, Shimoga, Udupi, Aurangabad, Jalgaon, Kolhapur, Mumbai, Nashik , Satara, Solapur, Thane, Amritsar, Bathinda, Jalandhar, Ludhiana, Pathankot, Ajmer, Alwar, Bhilwara, Bikaner, Jaipur, Jodhpur, Sikar, Udaipur, Salem, Dehradun, Haridwar, Rudraprayag, Chandigarh, Agra, Aligarh, Bareilly, Gorakhpur, Jhansi, Kanpur, Lucknow, Meerut, Varanasi, Kolkata, Gurugram, Navi Mumbai, Noida, Bhiwani, Pan India, trivandrum, Guwahati, Jamshedpur, Bhilai, Bhubaneswar, Siliguri, Kharagpur, Hubli, Mangalore, Haldwani, Prayagraj, Ahmedabad, Gajiyabad , kochi, Rishikesh, Durgapur, Rajamahendravaram

Existing City

Guntur, Muzaffarpur, Jammu, Srinagar, Aurangabad, Nagpur, Pune , Patiala, Chennai, Coimbatore, Tiruchchirappalli, Hyderabad, Delhi, Vizag, Vijaypara, Bangalore

Blocked City

Anantapur, Chittoor, Cuddapah, East Godavari, Guntur, Krishna, Kurnool, Nellore, Prakasam, Srikakulam, Vishakhapatnam, Vizianagaram, West Godavari, Jammu, Srinagar, Adilabad, Hyderabad, Karimnagar, Khammam, Mahbubnagar, Medak, Nalgonda, Nizamabad District, Rangareddi, Warangal, Bhimavaram, Kakinada, Vijaywada, Secunderabad, Rajahmundry, Vizag, vishakhapattanam, Husnabad, Eluru, Gudivada, Kadapa, Nandyala, Proddatur, Rayachoty, Suryapet, Rajamahendravaram

ROI Sheet

  Tier 1 Tier 2 Tier 3
No. of Student 500 400 300
Avg fees/student INR 80 K INR 80 K INR 70 K
Total Fees INR 4 Cr INR 3.2 Cr INR 2.1 Cr

Deduction

     
Rent INR 33.75 Lakhs INR 27 Lakhs

INR 16.20 Lakhs

Salary INR 1.34 Cr INR 1.33 Cr

INR 85.40 Lakhs

Marketing INR 8.90 Lakhs INR 13.56 Lakhs INR 8.90 Lakhs
Maintainace INR 4.50 Lakhs INR 3.60 Lakhs INR 2.70 Lakhs
Electricity INR 9 Lakhs INR 7.20 Lakhs INR 5.40 Lakhs
Miscellaneous INR 1.80 Lakhs INR 1.80 Lakhs INR 1.80 Lakhs
ROI 32.66 % 35.55% 40.34%
Contact
Mr. Avinash Shaw

Mob No. XXXXXXXXXX

Address: No. 1081, 2nd, 3rd & 4th Floor, 14th Main Sector-3, HSR Layout, Bangalore, Karnataka-560102


Contact for Vedantu

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