Business model of Vedantu


Vedantu is an Indian multinational online tutoring platform. It is the leading online tutoring company which enables students to learn LIVE with some of India’s best-curated teachers. The business model of Vedantu involves its business plan, revenue model, its competitors, SWOT Analysis and many more.

Why Vedantu went for a second round of lay-offs - BusinessToday

Vedantu allows its students to choose, browse, and discover online tutors. It is also helpful for the teachers as they can teach students in a much simpler way.

Business plan

Vedantu operates on a B2C business model whereby the company provides services like online live tutoring — using a virtual learning environment called WAVE (Whiteboard Audio Video Environment) — to students in the K-12 segment. Vedantu also offers online tutoring to students for various competitive exams.

With highly trained teachers and a technology-driven academic setup, Vedantu ensures a great learning experience for each of its students. Vedantu focuses on providing quality education and comprehensive analysis of students’ interaction and engagement in the class through online assessments and tests; hence, the progress of students is closely monitored.

Revenue model

A major portion of Vedantu’s revenue come from providing education to the students and the fees that come from the same. The company also sells subscription ranging from Rs 100 to Rs 5,000 for live and interactive sessions. Vedantu revenue system can be called freemium.

It implies that a portion of the content is accessible free of charge, while more content requires membership. This strategy pulls in numerous students. When they become acquainted with how great the application and the content are, they consequently feel the requirement for buying into the paid services.


Companies like Vedantu include:

SWOT Analysis


  • Expert Tutors: One of the biggest reasons for Vedantu having a strong customer base is its expert tutors. The subject area expert is handpicked through a careful hiring process. Their tutors are experts at the designated subjects and proficient at communicating their knowledge to the students.
  • Strong Base of Results: Their results are their unique selling point. They have a separate toggle on their website which conducts the feedback from their previous students in written and video format. More than 4 crore students are happy with their services.
  • First Mover Advantage: Vedantu was the first institution to offer live online classes, a live teaching platform, and the 2-teacher model in 2014 and is credited with designing the category concept.
  • Broader Curriculum: Today, Vedantu serves to teach courses to youth from 3 years old to 18 years old, as well as grooming for competitive exams such as IIT-JEE, NEET, Commerce, CBSE, ICSE, and state exams such as Maharashtra boards. It also offers extracurricular classes like English Speaking, Reading, and Coding.
  • Frequent Innovation: Starting with the K12 segment in 2011 on the internet reaching towards launching mobile applications for all the segments. All is possible due to the fast pace of the development of innovation and Vedantu adopting those facilities at its best.


  • Employee Retention: Sustaining qualified tutors may also be a problem, especially if their proficiency is in a high-demand subject and competition for their services is fierce.
  • Negative Reviews: There are always two sides to the coin. So, along with positive reviews, there are also negative reviews by many students and parents who are not satisfied with the service according to the fees charged.
  • Cold Calling & Home Visits: Between 60 to 70 percent of Vedantu & Byju’s business model is dependent upon cold calling and home visits to sell their courses. If the lead is not converted into sales then it increases the expenses of efforts and reduces the morale of their employees to work.
  • Parent’s Belief: In today’s era, still most parents believe, sending their children to coaching centres and tutors is more beneficial as compared to online learning. This reduces the probability of Vedantu capturing the market share.

Vedantu - Crunchbase Company Profile & Funding


  • Increased Trend of Digital Learning: With the majority of people switching towards the trend of online learning. It has increased the chances for Vedantu to increase its market share.
  • Tie-ups & Sponsorships: Tie-ups with knowledgeable programmes on television like KBC & Shark Tank India has increased the brand awareness of Vedantu.
  • Pandemic: The education sector has been adversely affected due to pandemics. It has given a gigantic opportunity to Vedantu to grow its market as much as possible because people are now more dependent on the online education system.
  • Launching of Professional Courses: Currently Vedantu is only providing classes for academic students and preparation for competitive exams like JEE and NEET. Further, it can offer online coaching in technical and professional courses, extracurricular activities, coding, etc.
  • Expansion to Rural Areas: The majority of the rural areas are still not updated with the current educational trend. Vedantu has an opportunity to tap those areas to broaden its business.
  • Collaboration with Schools: Vedantu can collaborate with schools to provide online home tutoring. Many academic institutions may have failed in funding to provide individual training to the students who need tutoring. This is where Vedantu can pinch their online tutoring services to cover this gap.


  • Student Boredom: Vedantu courses are subjected to more e-reading rather than e-learning which makes students at Vedantu frequently get bored with online training. This requirement of participation and inspiration is one of the main reasons online courses by Vedantu have failed the expectation for some special cases of privilege.
  • Hatred From Tutors: It is said that teachers who join Vedantu will completely lose their professional and personal life balance. Basic employment ethics are not followed at Vedantu which can lead to an increasing number of employees resigning from the job.
  • Privacy of Data: As the Vedantu education system works online it can increase the chances of threats from hackers and affect the privacy of data.
  • Competitors: Vedantu competitors like Byju’s, unacademy, toppr etc are grabbing the Indian education market very quickly. This is always a threat for Vedantu to sustain its position in the market.
  • Recession in Economy: As we said, there are always two sides to the coin. If pandemic has worked as an opportunity for Vedantu then this is also the time of economic recession. People are not willing to afford the expenses of online classes along with sending their children to school.


Online studies have gotten the new typical for students and instructors during the COVID-19 pandemic. Vedantu is striving hard by introducing various future plans for its business growth. It is planning to expand its services in the near future and also its reach in various rural areas.

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