| Company | Value | Change | %Change |
|---|
As 2024 comes to a close, ConveGenius, which provides schools with conversational AI tools, told CNBC-TV18 that it is likely to be in the Indicorn category (above ₹100 crore in revenue and profitable) by the end of FY25.
How did it all happen?
Just like most of us in college, five-six friends chalked out a business plan. Unlike most of us, four of these International Institute of Information Technology-Hyderabad (IIIT-H) graduates went ahead with the plan a few years later in 2014 and established ConveGenius with an investment of about ₹30-40 lakh. Four more of their friends joined in 2015.
ConveGenius’ model was to create an education distribution highway, for which it engaged in public-private partnership (PPP) with state governments and created core systems for schools.
However, the edtech firm finally got the product market fit in 2020 during the COVID-19 period, when online learning became the primary mode of education, Bhattacharya said. While the platform was free for all, the company would charge state governments for creating AI-based applications for learning.
“Conversational AI is the future. We had 40 million users in the second phase of COVID-19.”
Why ConveGenius was careful not to grow too much
ConveGenius was not the only edtech startup that saw multifold growth during the pandemic.
However, unlike BYJU’S, Unacademy, Vedantu, PhysicsWallah and others that implemented job cuts and restructuring measures to address overhiring and to work towards profitability, ConveGenius did not take that route, Bhattacharya said.
Also Read: India’s digital education ambitions — why it necessitates a structured roadmap
When asked how he was able to avoid the wave of layoffs, the CEO said, “we were careful not to grow too much…We did top-tier hiring of tech talent from IITs and engaged in regional hiring for local hyperbole.” ConveGenius, he added, is not investing in advertising, as he believes the business model must be independent of the finance model.
His firm started with one lab in 2014, catered to 600 schools in 2019 and 7,500 in 2024 and Bhattacharya said the revenue matrix must also grow alongside.
Reflecting on the growth since the pandemic, he said the firm has witnessed a growth of 80% since 2020 with a 10% earnings before interest, taxes, and amortisation (EBITA) margin in FY24.
Outlook for 2025
At the start of 2024, ConveGenius CEO told CNBC-TV18 that the firm’s focus in FY25 would be on stabilising its India business, profitability, strengthening its offerings, empowering its team, productivity, building capacity and consolidating market share.
In its latest update, the company shared that post-profitability, it is looking to continue investing in technology-based innovation and accelerate the ecosystem by investing in products that can create an impact at scale on SwiftChat, a conversational AI platform using bot technology and custom bot suites. While the app has 700,000 daily active users, it has reached over 1,25,000 learning hours daily, the firm shared.
Also Read: ChatGPT is revolutionary, it’s going to change education, says Coursera CEO Jeff Maggioncalda
While ₹100 crore revenue is on the cards by the end of this fiscal year, ConveGenius aims to clock ₹500 crore business in the next two years, Bhattacharya said.
