SUMMARY
BYJU’S accumulated losses of INR 13,229 Cr between FY16 and FY22, or about $1.6 Bn
BYJU’S total expenditure stood at INR 26,100 Cr during the period, with its loss in FY21 and FY22 accounting for 79% of this due to its acquisition spree
BYJU’S, which has been engulfed by a never-ending crisis due to its rising losses and multiple other issues, is now looking to raise $200 Mn via a rights issue at a 99% valuation cut
Troubled edtech giant BYJU’S accumulated losses of INR 13,229 Cr between financial year 2015-16 (FY16) and FY22. At current US dollar to INR exchange rate, this number comes to around $1.6 Bn.
It is pertinent to note that of the total loss accumulated over this period, the startup incurred around 62% in FY22 alone.
Earlier this month, the Byju Raveendran-led company filed its financial statements for FY22 almost 22 months after the end of the year. Its consolidated net loss soared 81% year-on-year (YoY) to INR 8,245.2 Cr.
It is pertinent to note that Think & Learn Pvt Ltd, the parent of BYJU’S, was incorporated in 2011. However, we have considered only the numbers for FY16 to FY22 for this analysis as the startup’s financial statements for FY12-FY15 were not accessible on the website of the Ministry of Corporate Affairs.
BYJU’S Spent Over INR 26,000 Cr Due To Acquisition Spree
BYJU’S total expenditure grew multifold over the FY16-FY22 time period. Its total expenditure in FY22 was 86 times higher than its expenditure in FY16. Overall, its expenditure stood at INR 26,100 Cr, or about $3.1 Bn, during the period under consideration.
Like its net loss, BYJU’S total expenditure in FY22 – INR 13,668 Cr – was about half of the expenditure incurred by it over the seven years.
Its combined expenditure in FY21 and FY22 accounted for 79% of the total expenditure between FY16 and FY22.
BYJU’S expenditure surged in FY21 as the edtech giant went on an acquisition spree during the year, riding the COVID-19 wave. Overall, it spent over $2.4 Bn for acquiring 10 startups in the calendar year 2021.
Advertising Expenditure The Biggest Cost
BYJU’S biggest expenditure over the years was its advertising costs, as the edtech giant splurged on promotion to attract more students to its platform. Between FY16 and FY22, the startup’s total advertising cost stood at INR 8,029 Cr, or almost a billion dollars.
Interestingly, BYJU’S spent almost 69% of its operating revenue on advertising during FY16 and FY22.
Besides having Shah Rukh Khan as its brand ambassador for several years, BYJU’S was also the jersey sponsor of the Indian cricket team for three years. It was also one of the sponsors of the 2022 FIFA WorldCup. The startup even roped in Lionel Messi as its global ambassador in early 2023. Meanwhile, BYJU’S operating revenue stood at INR 11,792 Cr during FY16-FY22 on the back of its acquisitions.
It must be noted that BYJU’S operating revenue saw a marginal decline in FY21 as the startup started recognising revenue from streaming services on a pro rata basis over the period of a contract from that year. Earlier, it used to recognise the revenue from these streaming services upfront on the commencement of the contract.
BYJU’S Endless Troubles
BYJU’S has been engulfed by a never-ending crisis due to its rising losses and multiple other issues over the last year or so. It has been plagued by a host of troubles, including the exit of board members, layoffs, delay in filing financial statements, growing losses, scrutiny of the Enforcement Directorate (ED), and a legal battle with the Board of Control For Cricket in India (BCCI). Now, one of BYJU’S vendors, France-based Teleperformance, has filed an insolvency plea against it over the pending dues.
Amid all these troubles, BYJU’S today said it has kickstarted its rights issue to raise $200 Mn from its existing shareholders. The startup is looking to raise fresh funds at a post-money valuation of $225 Mn, a 99% decline from its last valuation of $22 Bn.
