How Does Vedantu Make Money? Vedantu Business Model Explained

E-learning platforms represent the modern form of education. However, we realized its significance only after the pandemic. Online classes emerged as a savior for students during lockdowns. However, some visionary leaders already knew the importance of e-learning decades before the pandemic. Therefore, they established startups associated with e-learning so that students from any part of the world get the best education. Only with one condition i.e., the student must have a good internet connection. One such startup was Vedantu! It worked on the loopholes of the traditional form of education and established a live online tutoring startup in 2014. Now it competes with famous e-learning platforms like Byjus and Unacademy. Vedantu Business Model was immensely successful and earned Rs.169 crore in revenue in FY22.

How does Vedantu make money? You may ask. Go through this write-up and you will get the answer to your queries.

Vedantu: A Brief Overview

Before exploring the Vedantu business model, let’s have a quick overview of the company.

Working Strategy: How Does Vedantu Work?

Being an ed-tech company, its prime activity is to offer online classes on various courses. You can say that it is an Indian online tutoring platform that provides personalized learning experiences to students. So, Vedantu business model revolves around connecting students with qualified teachers through live online classes. Let’s look at its working strategies in detail.

1. Tutoring Platform: WAVE

Vedantu observed the existing gap between teachers and students in the traditional form of teaching. Therefore, it aims to provide good quality education comprehensively and interactively. It fulfills its objective by fostering online education through WAVE i.e. Whiteboard Audio Video Environment.

In WAVE, Vedantu brings the teachers and students together in a virtual classroom setting. Thus, students can access live interactive classes from the comfort zone of their homes. This feature is highly beneficial for students as well as for the company. How? You may ask. Because online classes don’t need any physical infrastructure. This saves a huge chunk of money/expenditure. So, the company can invest the saved money in better purposes like improving the user interface, hiring qualified teachers, etc. 

These are live online classes where you can directly interact with teachers, ask doubts/questions, and receive feedback immediately. Thus, WAVE offers real-time personalized attention to each student. Before applying for the courses, you can have demo classes to make better decisions.

2. Personalized Learning

WAVE fosters an interactive learning environment and enables personalized attention to each student. Vedantu prefers personalized learning. But how? It provides one-on-one and small-group classes. This approach allows teachers to tailor the learning experience according to individual student needs, helping them progress at their own pace. It is similar to the schools where classes are divided into different sections with small groups of students. Also, you can get one-on-one classes like personal tuition.

3. Qualified & Experienced Teachers

Teachers are the core of an ed-tech company. No matter how much you invest in the user interface or advertisements, students will come to your coaching only on one condition. If you provide quality education! And this is possible only with the help of qualified and experienced teachers. Therefore, Vedantu ensures the quality of its teaching by hiring qualified and experienced teachers. The platform has a rigorous selection process to onboard teachers who possess the subject expertise and excellent teaching skills.

Also, Vedantu invests in continuous training and support for its teachers. The platform conducts regular workshops, webinars, and professional development programs to enhance teaching skills, introduce new methodologies, and keep educators updated with the latest educational practices.

4. Vast Range of Courses & Study Materials

Vedantu offers a wide range of courses, covering various subjects and academic levels. It includes-

• K-12 Classes of the School Curriculum
• Test Preparation for competitive exams (JEE, NEET, etc.)

This diverse course catalog caters to the needs of different student segments. You can also opt for tuition for individual subjects. The prime subjects are-

• Physics
• Chemistry
• Maths
• Biology
• English

Vedantu provides comprehensive and high-quality study materials to support students’ learning journeys. The study material is designed to align with the curriculum and help students grasp concepts effectively. These materials include-

• Notes
• Assignments
• Practice tests
• Supplementary resources

5. Vedantu Pro’s Subscription Plans

It operates on a subscription-based model. Students can choose from different subscription plans based on their requirements and duration of engagement. The subscription grants access to live classes, study materials, practice tests, and additional support. It also acts as a crucial revenue source for the company. We will discuss it in detail in the section on “revenue sources.” Do you know, Vedantu offers three types of subscription plans-

• Lite
• Classic
• Plus

For instance, if you are preparing for NEET or JEE, the full-year course fee will begin at Rs.27,000. If you are interested in more in-depth and advanced learning, the fee structure will vary as per the subscription plan.

6. Technology Infrastructure

As you have read in the above sections, Vedantu doesn’t have any physical infrastructure. But it has a well-developed technology infrastructure. It heavily relies on technology to deliver its services effectively. The platform provides a user-friendly interface for seamless class interactions. It employs advanced virtual classroom tools, interactive whiteboards, chat features, and multimedia resources. It utilizes data analytics to track student progress and provide personalized recommendations.

7. Regular Assessment & Feedback

Vedantu’s working strategy includes regular assessments and feedback mechanisms. Teachers conduct quizzes, tests, and mock exams to evaluate student performance. They provide timely feedback, highlighting areas of improvement and suggesting strategies for growth.

8. Collaboration with schools and institutions

Vedantu collaborates with schools and educational institutions to expand its reach and provide supplementary education services. It partners with schools to offer integrated learning programs, test preparation modules, and live classes as part of the school curriculum.

Revenue Sources: How does Vedantu make money?

Vedantu makes money from diverse revenue sources. Some of the prime sources of revenue are-

1. Subscription Plans & Courses Fees

As you have read in the above sections, Vedantu Pro offers paid courses and programs that students can enroll in. Students pay a fee to access these courses, which contributes to Vedantu’s revenue. Students can access additional features and benefits by subscribing to a monthly or annual plan. This includes features such as personalized learning, doubt-solving, and additional study materials. Thus, the subscriptions contribute a major portion to Vedantu’s recurring revenue stream.

2. Test Preparation Programs

Vedantu provides specialized courses and resources for students preparing for competitive exams like IIT-JEE, NEET, and various other entrance exams. These courses are typically offered as paid packages, helping Vedantu generate revenue from students seeking exam preparation materials.

3. Collaborations & Partnerships

Vedantu collaborates with educational institutions, schools, and organizations to offer customized learning solutions. These partnerships may involve licensing Vedantu’s platform or creating tailored courses for specific educational institutions. Such collaborations can generate revenue through licensing fees or revenue-sharing arrangements.

4. Sponsored Advertisements

Vedantu also generates revenue through advertising and sponsored content. This involves displaying targeted ads on their website or within their learning materials. Additionally, Vedantu partners with brands or educational content providers to promote their products or services to their student base.

Marketing Strategies

Vedantu employs the following marketing strategies-

1. Video Advertisements

Video advertisements are not only attractive but effective as well. And when video ads are endorsed by celebrities, it heavily and positively impacts the audience. Recently, it launched a new video ad campaign with Bollywood actor Aamir Khan for Ai-LIVE technology.

2. Digital Marketing

Vedantu gained a large user base through effective digital marketing campaigns like Google ads, Social Media ads, etc. It runs advertisements on social media platforms, educational websites, and other relevant online platforms that students and parents frequently visit. This marketing strategy helped Vedantu to gain a large user base in a short period.

Vedantu has a strong presence on popular social media platforms like Facebook, Instagram, YouTube, and Twitter. Through engaging posts, educational content, and interactive campaigns, they can reach and engage with their target audience directly.

3. Content Marketing

It is one of the most common marketing strategies that almost every ed-tech platform uses. Vedantu may create and share valuable educational content, such as blog articles, videos, infographics, and webinars, to attract and engage its target audience. This content is often designed to address common pain points or provide useful information related to education.

Conclusion

The ed-tech company “Vedantu” is an online education platform that offers live tutoring and personalized learning experiences. Vedantu business model revolves around providing students with access to qualified teachers through interactive online classes. Vedantu offers various subscription-based plans, allowing students to choose their preferred subjects and topics. 

The platform utilizes a two-way interactive learning system that enables students to ask questions and receive real-time feedback. Additionally, Vedantu provides supplementary study materials and conducts regular assessments to track students’ progress. The company generates revenue through subscription fees, offering different pricing tiers to cater to students’ needs. 

Thus, Vedantu business model aims to make quality education accessible and convenient for students across the globe.