Byju’s Lost Rs 13 Crore Per Day In Last 365 Days; Sales Shrink By 3%

Byju’s revenue has fallen by 3% over the past year on a consolidated basis, as confirmed by Byju Raveendran, Founder and CEO of the Indian edutech startup. 

In his words, “If this can’t break us, nothing will.” 

Byju Announces Revenue After A Year: Revenue Decreased By 3%

According to the FY21 figures, the company’s sales decreased by 3% annually to Rs 2,428 crore on a consolidated basis, from Rs 2,511 crore the year before. In comparison to the adjusted loss of Rs 231.69 crore in FY20, Byju’s reported a loss of Rs 4,589 crore in FY21 (2019-20).

The company has announced its revenue after a delay of one whole year.

Due to modifications in its revenue recognition, the company declared a revenue of Rs 2,704 crore in its FY20 filings with the MCA, but Byju Raveendran stated that the company actually had a revenue of Rs 2,511 crore in that year. 

Byju’s has not yet submitted its results for FY21 to the MCA in a formal manner. The adjusted loss for Byju’s FY20 has also reduced from an earlier loss of Rs 262 crore.

As per Raveendran, “During COVID, we gave streaming access to a lot of our users because of shipment delays. (Byju’s also sells Tablets and SD cards as a part of its subscription) And that had to be changed. The revenue had to be recognised across the period of consumption.”

Causes Of Delay in Revenue Adjustment

Second, recognition was based on a sizable collection of credit sales and EMI (equated monthly installment) sales. Following the conclusion of collection, revenue was recognized. These two further adjustments needed to be done.

According to Byju’s, a considerable growth in business was not shown in the revenue figure due to a change in accounting practises, and roughly 40% of the revenue was postponed to later years.

Three causes contributed to the delay in reporting its FY21 results. First, according to Raveendran, COVID prevented the company from travelling, which caused the audit of some of the companies it had acquired to be delayed. 

He added that Deloitte’s recommendation for a change in revenue recognition and the complexity of the acquisitions were both to blame for the delay in disclosing the findings.