Though most unicorns are still suffering from the problem of cash burn with no sight of profits, Bengaluru-based edtech startup unicorn Byju’s has announced that it has returned a profit in the financial year 2019. The company increased its net revenue from INR 490 Cr in FY 17-18 to INR 1341 Cr with a net profit of INR 20 Cr. The gross revenues increased from INR 520 Cr to INR 1480 Cr. Moreover, in the current fiscal, the company is planning to nearly double its revenue to INR 3000 Cr in FY20.
Over the past year, the edtech company has reached over 40 Mn registered users and 2.8 Mn paid subscribers. It claims that the average number of minutes a student spends on the app has increased from 64 minutes to 71 minutes per day in the past year and the annual renewal rates are as high as 85%.
The company will be launching new products as it hopes to get to that mark in the new year. “With 60% of our students based outside the metros, the aspiration and need for quality learning has never been higher. In the current financial year, we are on track to double our revenue to INR 3000 Cr. We will also be launching BYJU’S Online Tutoring which will further accelerate growth and profitability in the coming year,” Byju’s COO Mrinal Mohit said in a press statement.
For Bjyu’s, deeper penetration across the country and an increase in the overall number of paid users played a key role in turning itself profitable. “We are also planning to reach out to deeper parts of India by launching programs in vernacular languages,” Mohit added.
In January 2019, BYJU’S also forayed into the US with the acquisition of Osmo, a US-based learning platform. Over the last year, the company’s fundraising has focused on international expansion. The expansion to the Middle East, the US, the UK, South Africa, and other African and Commonwealth market have been on the cards. Recently, Byju’s has also tied up with Disney to launch its edtech services for kids in classes 1st to 3rd. BYJU’S Early Learn app for young children aged between 6 to 8 years old with Disney’s stories and characters from Disney Princess, Frozen, Cars, Toy Story franchises and more.
In the next year, the company is also planning to launch Byju’s Online Tutoring which will further help the company to accelerate its growth and profitability.
Founded in 2008 by Divya Gokulnath and Byju Raveendran, BYJU’S offers a learning app, which was launched in 2015 and has learning programmes for students in classes IV-XII along with courses to help students prepare for competitive exams like JEE, NEET, CAT, IAS, GRE, and GMAT.