SUMMARY
BYJU’S is on course to report 23% higher revenue than FY22, as per information shared by the company with key investors
Sources also told Inc42 that BYJU’S has touched a revenue of INR 3,500 Cr in the first six months of the ongoing fiscal year or H1 FY24
Meanwhile, BYJU’S shareholders have called for an EGM on February 23 in a bid to reconstitute the company’s board and bring in a leadership change
Edtech giant BYJU’S is expected to report total revenue of around INR 6,500 Cr in the financial year 2022-23 or FY23, which ended March 31, 2023, according to sources close to the management.
This would be 23% higher than the consolidated income of INR 5,298 Cr reported by parent entity Think & Learn Private Limited in FY22
Sources also told Inc42 that BYJU’S has touched a revenue of INR 3,500 Cr in the first six months of the ongoing fiscal year (H1 FY24), with the company expecting to continue this revenue rate for the full year.
The company is said to be seeing close to INR 200 Cr in monthly sales, but revenue collection challenges persist due to the discontinuation of partnerships with non-bank financial company (NBFC) lenders.
BYJU’S has submitted the information to key investors, according to sources who spoke on the condition of anonymity as the company is yet to file audited financial statements.
However, sources did not have information about the net loss for FY23 or the ongoing FY24.
BYJU’S net loss surged 81% YoY to INR 8,245.2 Cr (close to $1 Bn) in FY22 as WhiteHat Jr and other loss-making acquisitions continued to weigh down the bottom line. In FY22, the startup’s total expenses nearly doubled to INR 13,668 Cr.
Cost-Cutting Spree Since 2022
Questions sent to BYJU’S about the FY23 and FY24 financials didn’t elicit any response at the time of publishing the story. We will update the story if and when the company responds to the claims made by sources.
Sources, who were privy to the documents shared with investors, added that the company has reduced its overall expenses significantly, especially in the marketing and employee benefit costs.
The Bengaluru-based startup is said to have reduced marketing expenditure in FY23 by around 20%, and cut the employee costs by 30%. Further in H1 FY24 or as of September 2023, the company is said to have cut its marketing and employee costs by 13% and 16% respectively.
For context, BYJU’S FY22 ad expenses stood at INR 4,144 Cr or 30% of the total expenses, and employee benefit expenditure of INR 3,552 Cr was around 26% of the total expenditure.
This is in line with the layoffs at the cash-starved company — BYJU’S has already laid off over 6,000 employees since early 2022, with around 12,000 employees currently engaged with the company. At its peak, BYJU’S had an employee count of around 50,000, so it has shed over 75% of the workforce since 2022.
Without a look at the net profit or EBITDA numbers for FY23 and FY24, it’s hard to state whether these cost-cutting measures have helped the company show improved profitability.
BYJU’S Litany Of Troubles
From uncontrolled losses, business model challenges, confrontations with investors and legal battles with creditors and vendors, BYJU’S has been fighting fires on multiple fronts in the past two years.
In the past few months, key members of the board such as Russell Dreisenstock of Prosus, Chan Zuckerberg Initiative’s Vivian Wu, and Peak XV Partners’ GV Ravishankar resigned and the company is being probed by the Enforcement Directorate for an alleged Foreign Exchange Management Act (FEMA) to the tune of INR 9,000 Cr.
Four separate insolvency pleas have been raised against BYJU’S including one by the Board of Control For Cricket in India (BCCI) over non-payments for jersey sponsorship deals.
Earlier this year, BYJU’S shareholders called for an extraordinary general meeting (EGM) to reconstitute the company’s board and bring about a leadership change. Investors called for an EGM after BYJU’S kicked off a $200 Mn rights issue at a post-money valuation of $225 Mn, a whopping 99% decline from its last valuation of $22 Bn. The EGM is scheduled for February 23, 2024.
