Ed-tech company, Byju’s has started to shift its focus towards profitable growth and revenue of $2 billion, Byju Raveendran, founder, CEO, Byju’s, told his employees. Raveendran said that Byju’s has clocked more than Rs 1,000 crore in sales in each of the last five months and it is nearly 20 times the size of the next two competitors in the K12 (kindergarten through grade 12) segment.
“Going forward in FY23 and beyond, we will combine growth with efficiency to ensure sustainability. We have already started shifting our focus towards profitable growth. The overall idea is to allocate resources effectively in order to maximize impact,” he wrote to employees.
This comes after Byju’s reported a loss of Rs 4,564 crore in the 2021 fiscal. Last week, Byju’s released audited financial statements for fiscal 2020-21 (April 2020 to March 2021) after a delay of more than 17 months.
The financial statement revealed that the net loss of the company swelled to Rs 4,564 crore as promotion and employee expenses rose. Revenues dipped 3.3% to Rs 2,428 crore as it deferred about 40% of its revenue to subsequent years due to its new revenue recognition model.
As per the official statement, Raveendran said the FY21 audit got “very delayed” and “many baseless theories got floated around.” “But the fact is that we were not adequately prepared to handle the audit for the size of the company we have grown to, and we learnt this the hard way,” he said, adding Byju’s had grown in every dimension — products, business models, geographies, and customer segments.
The statement further added that in addition to the change in revenue recognition, the startup had numerous acquisitions to account for. “All of this stressed our systems, our people and resulted in inordinate delays. While we struggled on the audit front, our business has been thriving,” he said. Furthermore, Raveendran said that the last financial year (FY22, ended March 2022) was Byju’s best year so far and 2022-23 is set to be even better.
Raveendran said there has been a 4x growth in revenue growth to nearly Rs 10,000 crore ($1.3 billion) in 2021-22 from the previous fiscal. In the K12 segment, Byju’s revenue is nearly 20 times the next two competitors combined, he added.
Meanwhile, on its recently acquired Aakash Education, Raveendran said the revenue of Aakash has nearly doubled. “Long growth story short, we now have self-learning platform (Byju’s learning app), live learning platform (Byju’s classes and Byju’s 1-on-1), reading platform (Epic!), coding community (Tynker), and not-for-profit edTech initiative (Byju’s Education for All),” he said.
“2022 has taught us to remain agile, be open to adjustments and learn from our shortcomings. We will leverage these lessons to emerge even stronger,” Raveendran concluded.
With inputs from PTI