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EdTech

How a Pune-Based EdTech Startup Cut AI Costs by 60% and Built a Scalable Content Engine

A fast-growing EdTech platform was burning ₹12L/month on AI API costs with a 22% error rate on generated content. We optimized their model strategy and built custom question generation skills that cut costs by 60% while improving accuracy.

₹4.8L
Monthly AI Costs
60% reduction
94%
Question Accuracy
+16 percentage points
3x output
Content Velocity
3x faster
Flat
Cost Growth Rate
Stabilized

Client

Series A EdTech platform, 45K students, JEE/NEET/CAT prep

Industry

EdTech

Timeline

10 weeks including model optimization and testing

The Challenge

The client's AI-powered content engine was their core product, but costs were spiralling and quality was inconsistent. API spend was growing 12-15% month-over-month, and nearly a quarter of generated questions had errors.

  • ₹12L/month in AI API costs, growing 12-15% MoM
  • 22% error rate on AI-generated questions requiring manual review
  • Single-model approach using expensive GPT-4 for all tasks
  • Content team spending 40% of time correcting AI output
  • Doubt resolution system slow and often inaccurate

The Solution

We implemented a tiered API strategy that routes tasks to the right model based on complexity, and built custom fine-tuned skills for question generation and doubt resolution specific to Indian competitive exam formats.

  • Tiered model strategy: lightweight models for simple tasks, premium models for complex reasoning
  • Custom question generation pipeline calibrated to JEE/NEET/CAT patterns
  • Fine-tuned doubt resolution system with syllabus-aware context
  • Automated quality scoring to catch errors before human review
  • Caching layer for common question patterns and explanations
  • Cost monitoring dashboard with per-feature spend tracking

The Results

Monthly AI Costs

₹12L₹4.8L

60% reduction

Question Accuracy

78%94%

+16 percentage points

Content Velocity

Baseline3x output

3x faster

Cost Growth Rate

12-15% MoMFlat

Stabilized

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