Of INR 154.1 Cr operating revenue, Gradeup earned INR 119.3 Cr from “business support services” provided to Think & Learn Pvt Ltd, the parent company of BYJU’S, in FY23
Gradeup also borrowed an additional INR 3 Cr from Think & Learn in FY23 and it owed INR 99 Cr to BYJU’S at the end of the year, over 6X of its net profit
Lodha & Co, the startup’s auditor, flagged concern about its ability to continue as a going concern basis
BYJU’S-owned Gradeup turned profitable in the financial year ended March 31, 2023. The exam preparation startup reported a net profit of INR 15.2 Cr in the financial year 2022-23 (FY23) as against a net loss of INR 133 Cr in the previous fiscal year. Meanwhile, the startup’s auditor flagged concern about its ability to continue as a going concern basis. “The company has significant accumulated losses which has resulted in erosion of its entire net worth as at March 31, 2023. Further, current liabilities exceeds current assets by Rs 11,117.74 Lakhs… These conditions indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern basis,” auditor Lodha & Co said.
The edtech startup’s operating revenue surged 214% to INR 154.1 Cr in FY23 from INR 49.1 Cr in the previous fiscal year.