Skillmatics, a company that sells educational products directly to consumers (D2C), increased its operating scale by 39% in the fiscal year that ended in March 2025. However, during the same time period, the Mumbai-based company experienced a decline in profits as a result of increased employee expenses.

Key Highlights

• Skillmatics' operating revenue grew 39% to ₹103 crore in FY25, reflecting strong market demand.
• Despite revenue growth, Skillmatics reported losses due to increased employee costs during the fiscal year.

Skillmatics' financial statement submitted to the Registrar of Companies (RoC) shows that its operating revenue increased 39% from Rs 74 crore in FY24 to Rs 103 crore in FY25.

Skillmatics was established in 2016 and creates educational games and products for kids under ten. Eighty-nine percent of operating revenue came from the sale of these educational products. Its total revenue for the year was Rs111.6 crore, which included Rs 8.6 crore in non-operating income.

Geographically, 62% of product sales were made in India, where sales rose 87% to Rs58 crore in FY25. Outside of India accounted for 38% of the product sales, a 16% decline to Rs 36 crore in FY25.

From Rs 82 crore in FY24 to Rs 114 crore in FY25, the company's expenses increased by 39%. The cost of materials accounted for 44% of the total expenditure and increased by 22% from Rs 41 crore in FY24 to Rs 50 crore in FY25. While advertising costs doubled to Rs 18 crore, employee benefits increased by 41% to Rs 24 crore.

Product listing fees (Rs 3 crore), packing, storage, and transportation (Rs 8 crore), and other overheads (Rs 11 crore) were other noteworthy costs. See TheKredible for a more thorough breakdown of costs.

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Skillmatics reported a net loss of Rs 2.5 crore in FY25 compared to a profit of Rs 40 lakh in FY24 as a result of the increase in expenses. It had an EBITDA margin of -10.10% and a ROCE margin of -5.66%.

The ratio stayed the same from the previous fiscal year, with Skillmatics spending Rs 1.11 for every rupee of operating revenue. In FY25, current assets were valued at Rs 107 crore, while cash and bank balances were at Rs 45 crore.

TheKredible reports that Skillmatics has raised approximately $24 million in funding to date, with Sofina and Peak XV Partners serving as its primary investors. Dhvanil Sheth and Devanshi Kejriwal, the company's co-founders, own 44% of the business.