“Lesson learned from gaps,” says Byju CEO as education tech focuses on profitable growth
Educational technology company, Byju’s, has begun to focus on profitable growth and $2 billion in revenue, Byju’s founder and CEO Byju Raveendran told employees. Raveendran said Byju’s has recorded over Rs 1,000 crore in sales in each of the last five months and is nearly 20 times the size of the next two competitors in the K12 (K-12) segment. ).
“Going forward in FY23 and beyond, we will combine growth and efficiency to ensure sustainability. We have already started to focus on profitable growth. The general idea is to allocate resources efficiently to maximize impact,” he wrote to employees.
This comes after Byju reported a loss of Rs 4,564 crore in the financial year 2021. Last week, Byju released its audited financial statements for the financial year 2020-21 (April 2020 to March 2021) after a delay of more than 17 months.
The financial statement revealed that the company’s net loss swelled to Rs 4,564 crore as promotion and employee expenses increased. Revenue fell by 3.3% to Rs 2,428 crore as it deferred around 40% of its revenue to subsequent years due to its new revenue recognition model.
According to the official statement, Raveendran said the FY21 audit had been “much delayed” and that “many baseless theories have been circulating.” “But the thing is, we weren’t prepared enough to handle the audit for the size of the company we grew to, and we learned that the hard way,” he said, adding that Byju’s had grown in all dimensions – products, business models, geographies and customer segments.
The statement further added that in addition to the change in revenue recognition, the startup has many acquisitions to consider. “All of this has strained our systems, our people and caused undue delays. While we have struggled on the audit front, our business has thrived,” he said. Furthermore, Raveendran said last financial year (FY22, ended March 2022) was Byju’s best year so far and 2022-23 is expected to be even better.
Raveendran said revenue growth increased fourfold to almost Rs 10,000 crore ($1.3 billion) in 2021-22 from the previous financial year. In the K12 segment, Byju’s revenue is nearly 20 times that of the next two competitors combined, he added.
Meanwhile, on his recently acquired Aakash Education, Raveendran said Aakash’s revenue has nearly doubled. “Long history of growth, we now have a self-learning platform (Byju’s learning app), a live learning platform (Byju’s courses and 1-on-1 Byju), a reading platform (Epic!), a coding community (Tynker) and a non-profit edTech initiative (Byju’s Education for All),” he said.
“2022 has taught us to stay agile, to be open to adjustments and to learn from our shortcomings. We will build on these lessons to come out even stronger,” Raveendran concluded.
With PTI entries
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