Recent years have been not very kind of Byju as far as business is concerned since the company has been incurring financial losses in recent years. From the FY16 till FY22, the company has accrued losses that total to $1.6 billion or INR 13,229 crore. Notably, it is the year FY22 which has caused 62% of the total aforementioned loss.
Byju Loses $1.6 billion from FY16 till FY22
Since the data was not accessible for earlier years, the analysis of company’s financial statements analysis have been limited to the mentioned years.
Surging to INR 26,100 crore (about $3.1 billion) in FY22, there has been almost 86-fold increase from its expenditure in FY16. Significant portion of this expenditure is allocated to the acquisitions that accounted for a substantial portion of the company’s overall financial outlay over the seven-year period.
With the company allocating huge amount of resources for the promotional activities in an aim to expand its student base, Advertising emerged as BYJU’S largest spend and interestingly between FY16 and FY22, it has spent INR 8,029 crore (almost $1 billion) towards advertising. This is notably 69% of its operating revenue during this time.
Marred with Other Issues
In additional to bleeding money, there have been plethora of other challenges that have plagued the company. These include board member departures, layoffs, delayed financial reporting, increased regulatory scrutiny, and legal disputes.
Due to outstanding dues, the company troubles have further intensified with a vendor filing for insolvency.
However, aiming for a post-money valuation of $225 million, the company has already initiated a rights issue to raise $200 million from existing shareholders. Notably, the company at its peak was valued at 22billion$.
This fundraising effort reflects the company’s efforts to address its financial constraints and navigate through turbulent times in the edtech landscape.
