In an edtech landscape marked by closures and cash burn, PlanetSpark has emerged as a rare success story. The startup, which specialises in communication and soft skills training for children, has achieved cash flow break-even after eight years of operations and is set to enter the ranks of profitable edtech companies by FY26.
Founded in 2017 by XLRI alumni Kunal Malik and Mahesh Dhoopar, PlanetSpark recognised the untapped demand for communication and language learning among Indian students. The company capitalised on the 4 million monthly Google searches related to soft skills, with topics such as communication classes, personality development, and confidence-building for children driving significant interest. This insight led PlanetSpark to focus on the K-12 segment, targeting students from kindergarten to Class XII.
Despite challenges faced by the broader edtech sector after the pandemic, PlanetSpark adapted by integrating artificial intelligence (AI) and automation into its operations. This shift enabled the company to streamline processes, reduce costs, and enhance learning personalisation. The introduction of a SaaS-based tool for teachers further contributed to cost-efficiency and revenue growth. Notably, AI now supports nearly a quarter of the company’s learning modules.
Backed by Prime Venture Partners, Innoven Capital, and Binny Bansal, the company has raised $31.3 million to date — modest compared to the capital influx seen by other edtech players. However, this conservative fundraising approach, combined with AI-driven optimisation, helped PlanetSpark reduce losses by 70% to ₹26.6 crore in FY24 and increase revenue by 60% to ₹67 crore. Gross bookings in the first half of FY25 already stand at ₹61 crore, securing cash flow break-even status.
PlanetSpark’s growth is particularly impressive given that over 84% of its revenue comes from middle-income households, with India contributing 70-80% of its total earnings. The company now plans to achieve full profitability by FY26 and is preparing for a public listing within two years.
With language learning gaining traction and edtech competition intensifying, PlanetSpark’s first-mover advantage and data-driven AI capabilities position it strongly to sustain its growth and navigate the evolving market dynamics.
