BYJU’S INR 8,200 Cr Loss In FY22 — Spent INR 13,600 Cr To Earn INR 5,000 Cr

Edtech giant BYJU’S consolidated net loss crossed the INR 8,000 Cr, or about $1 Bn, mark in the financial year ended March 31, 2022. The embattled startups filed its financials with the Ministry of Corporate Affairs nearly 22 months after the end of the financial year 2021-22 (FY22).

As per the filings, BYJU’S net loss surged 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21.

Founded by Byju Raveendran and Divya Gokulnath in 2011, Bengaluru-based BYJU’S is still considered to be one of the biggest edtech startups in the country. It mostly caters to the K12 segment in India and abroad. 

Its operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review, mostly on the back of improvement in the financial performance of Aakash. 

In a release, BYJU’S said its subsidiaries WhiteHat Jr and Osmo dragged down its financial performance during the year under review.

Including other income, BYJU’S total revenue stood at INR 5,298.4 Cr, a jump of 118% from INR 2,428.3 Cr in FY21.

Where Did BYJU’S Spend?

The edtech giant saw its total expenditure increase 95% to INR 13,668.4 Cr in FY22 from INR 7,027.4 Cr in the previous fiscal year. 

Employee Benefit Expenditure: The edtech startup spent INR 3,552.2 Cr on employee salaries, and other employee benefits. This was 83% higher than INR 1,943.3 Cr in the previous fiscal year. It must be highlighted that BYJU’S, which has been on a cost-cutting drive, has laid off over 4,000 employees since the beginning of 2022. 

Advertising Expenditure, Others: The edtech startup spent INR 4,143.9 Cr on advertising and production activities during the year under review, a jump of 84% from INR 2,250.9 Cr in the previous fiscal year. It must be noted that the edtech giant partnered with Lionel Messi for brand promotion ahead of FIFA World Cup 2022. 

Procurement Cost: BYJU’S provides tablets with educational materials to students. The cost of procurement of these devices increased 54% to INR 888.8 Cr in FY22 from INR 576.4 Cr in FY21. 

BYJU’S Financial Troubles

The edtech giant’s auditor also flagged uncertainty about its ability to continue as a going concern. The auditor highlighted that “adverse financial parameters” such as continuing net losses from operations and accumulated losses, in addition to the uncertainty related to the outcome of the litigation of the $1.2 Bn Term Loan B availed by Byju’s Alpha Inc and its financial impact “indicate that a material uncertainty exists that may cast significant doubt on Group’s ability to continue as a going concern”.

However, the auditor also noted that the startup is securing necessary funding arrangements and exploring sale of assets as needed to improve its financial condition. As per the startup’s financial statement, edtech giant has also discontinued the operations of two of its acquired businesses – Specadel Technologies Private Limited (Specadel) and Span Thoughtworks Private Limited (Vidyartha). 

Desperate for funds to sustain its operations, BYJU’S was reportedly in talks to sell Aakash, Great Learning and Epic to repay its $1.2 Bn Term Loan B. 

BYJU’S has been fighting on multiple fronts for more than a year now. It continues to be plagued by a host of troubles, including the exit of board members, layoffs, delay in filing financial statements, growing losses, scrutiny of the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI).