SUMMARY
BYJU’S ‘business promotion expenses’ stood at INR 2,250.9 Cr in FY21, an increase of almost 150% from the previous year
The combined marketing expenditure of Unacademy, Vedantu, and upGrad stood at INR 793.5 Cr in FY21
BYJU’S loss soared 19.8X to INR 4,558.7 Cr in FY21 from INR 231.6 Cr in FY20
India’s most-valued edtech startup BYJU’S finally released its financial statements for 2020-21 (FY21) on Wednesday, nearly 18 months after the end of the year. Its consolidated loss soared 19.8X to INR 4,588.7 Cr during the year from INR 231.6 Cr in FY20.
The startup saw a minor slump in terms of total revenue, mostly because of changes in its revenue recognition method. Its total income fell 3% to INR 2,428.3 Cr in FY21 from INR 2,511.7 Cr in FY20.
The startup’s total expenses also increased nearly 2X to INR 7,027 Cr in FY21 from INR 2,873.3 Cr in FY20. However, it was BYJU’S ‘business promotion expenses’ during the year that stood out.
By now, it is well known that BYJU’S has a no-holds-barred approach when it comes to spending on marketing. Be it being the title sponsor of the Indian national cricket team or roping in one of the highest paid Indian actors, Shah Rukh Khan, as an official brand ambassador, BYJU’S has spent a hefty amount over the years to become a household brand.
The year FY21 was no different. The startup spent INR 2,250.9 Cr for business promotion expenses during the year, almost a 150% jump from INR 899.3 Cr spent in FY20.
Business promotion expenses usually comprise marketing expenses that a company undertakes to promote its products and services.
BYJU’s business promotion expenses contributed almost 32% to its total expenses during FY21. Compared to its consolidated revenue from operation, business promotion expenses were less by just INR 30 Cr.
In comparison, Gaurav Munjal-led Unacademy, which is the country’s second-most valued edtech startup, spent around INR 411.2 Cr on advertising promotional expenses in FY21. This was nearly 20% of its total consolidated expenses of INR 2,029.9 Cr during the year. Unacademy’s total revenue stood at INR 464.4 Cr in FY21, while its total loss stood at INR 1,537.4 Cr.
Meanwhile, Temasek-backed upGrad, which recently raised $210 Mn amidst the ‘funding winter’, spent INR 205 Cr on advertising and promotional expenses in FY21. This was almost 40% of its total expenses of INR 513.7 Cr during the year. The startup reported revenue of INR 302.6 Cr and a loss of INR 211.1 Cr in FY21.
The advertising and promotional expenses of another edtech startup Vedantu, led by Vamsi Krishna, stood at INR 177.3 Cr during FY21. This was almost 24% of its total expenses of INR 736.1 Cr during the year. The Bengaluru-based Vedantu reported a total revenue of INR 134.9 Cr in FY21, while loss stood at INR 604 Cr.
The combined marketing expenses of Unacademy, Vedantu, and upGrad stood at INR 793.5 Cr in FY21. In comparison, BYJU’S consolidated marketing expenses for FY21 were nearly three times more than the combined marketing expenses of the three edtech unicorns.
While the revenue numbers indicate that BYJU’S is a much bigger startup than the other three, the disparity in marketing expenses shows how aggressively BYJU’S has been spending on advertising and promotion to increase its share in the hyper-competitive market.
