Founder Mohan Lakhamraju emphasized Great Learning’s commitment to self-sufficiency. “We don’t want to depend on anyone else to bring in cash. We are operating with our own funds, and everything we generate is being reinvested in the business,” he said in an interview with Mint.
Founded in 2013 by Lakhamraju, Hari Krishnan Nair, and Arjun Nair, Great Learning specializes in hybrid higher education and professional programmes. In 2021, it was acquired by Byju’s, the beleaguered edtech giant, for $600 million in cash and equity. At the time, Byju’s had raised $1.2 billion through a term loan B from overseas markets, earmarked for North American expansion and aggressive growth.
But by 2022, cracks began to show. Byju’s defaulted on its loan payments, triggering a protracted legal battle with its US lenders. The dispute resulted in lenders seizing mortgaged assets, including Great Learning and Byju’s Singapore unit in October 2023 , following the edtech giant’s financial default.
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Now, Great Learning operates under lender ownership, with its management team steering the company toward profitability and exploring exit options for its new stakeholders.
“We will, at a later stage, consider an IPO or a strategic sale to provide an exit to these investors,” said Lakhamraju.
Meanwhile, troubled edtech giant Byju’s is still grappling with financial distress and facing insolvency proceedings in India.
From self-funding to global ambition
In the months since the transition, Great Learning has leaned on self-funding, sidestepping venture capital dependency to maintain financial health. The company has also ruled out aggressive expansion moves for now, choosing instead to focus on organic growth.
“We don’t have the appetite or capacity to handle anything else now, so we will continue to grow organically,” Lakhamraju said.
Two key acquisitions—talent recruitment firm Superset and executive education provider Northwest Executive Education—remain the company’s recent strategic moves, both completed in 2022 during a period of pandemic-driven momentum.
Earlier this week, Great Learning announced a 23% jump in revenue, reaching $118 million ( ₹992 crore) for FY24, marking a return to profitability with low single-digit profits at $1.2 million. This is a sharp turnaround from FY23, when the company posted ₹801 crore in revenue but suffered a ₹210 crore loss. Now, the company is targeting double-digit profitability and aims to grow revenue by 25% in the current fiscal year.
“Most of the growth will come from international markets. In India, we expect it to be flat, and we’ll be very happy if India is flat,” Lakhamraju admitted, reflecting the challenges of a sluggish domestic job market.
Navigating the Indian market
India’s upskilling market is struggling amid weak hiring trends. Decisions to invest in professional development are closely tied to job opportunities, and a lack of high-paying roles has dampened demand. “With a weak job market, the Indian upskilling demand has taken a hit this year,” said an executive from a rival upskilling firm.
To address these challenges, Great Learning has been focusing on offering online degrees in partnership with reputable institutions like Johns Hopkins, Duke University, and IIT Bombay, helping it manage demand in India.
Mujtaba Wani, a principal at GSV Ventures, noted the opportunity in this space. “Online degrees are a big and growing market, especially after Indian regulators made it easy,” said Wani, who has been involved in GSV’s investments in Indian edtech companies like Classplus, PhysicsWallah, and Quizizz.
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While the Indian market remains sluggish, Lakhamraju remains optimistic, predicting a rebound in 2025 as IT companies and startups pick up hiring. Meanwhile, artificial intelligence (AI) courses have emerged as a major revenue driver, and Great Learning plans to double down on this segment.
AI is expected to bring sustainable growth for the long term, and we are absolutely riding that. For the next five years, if not more, this trend is going to keep propelling us forward.
Great Learning is also focusing on its nascent enterprise business, which currently contributes just 10% of revenue.
“While we have an enterprise business, it’s not as big as it could be—we haven’t fully tapped into that opportunity yet. That is one focus area for us now,” said Lakhamraju. This mirrors a broader trend, as an increasing number of B2C-focused upskilling rivals, including Eruditus, Simplilearn, and upGrad, have been trying to expand into B2B segments.
Additionally, Great Learning is expanding its study abroad segment, enabling certificate students to earn credits toward degrees at partner universities overseas. “These programmes provide participants with valuable credentials and allow them to pursue degrees at a more affordable cost,” Lakhamraju said.
The company also aims to scale its hybrid model internationally, beginning in the US, where it has introduced offline courses through a cost-efficient approach. “In today’s shared economy, you don’t need to own resources—you leverage them as needed. We can easily secure space directly on university campuses, and at our current scale, everything is running smoothly,” he added.
Cost controls amid funding crunch
Like many edtech firms, Great Learning has felt the sting of a slowdown in venture funding since 2022. To stay profitable, the company has adopted strict cost controls—integrating AI into backend operations, pausing new hiring, cutting travel expenses, and avoiding office expansions.
“We’re able to grow our top line without having to proportionately increase our expenses,” said Lakhamraju. “The main drivers for profits are CACs coming down and operating leverage improving.”
Former Byju’s chief executive Byju Raveendran recently said that Great Learning’s brand benefited from its time under the Byju’s umbrella, resulting in a notable user base expansion. Lakhamraju agreed, noting that Byju’s investments helped establish a strong presence in India. Now, the company is pivoting to build brand identity in international markets, with a measured approach.
“But we don’t have any plans for anything out of the ordinary—no sponsorship deals in the pipeline,” Lakhamraju said, hinting at a disciplined focus on core growth areas rather than flashy marketing.
