Gradeup, an exam preparation startup owned by BYJU’S, has reported a net profit of INR 15.2 Cr for the financial year 2022-23 (FY23), marking a significant turnaround from its net loss of INR 133 Cr in the previous fiscal year. The operating revenue for Gradeup surged by 214% to INR 154.1 Cr in FY23, up from INR 49.1 Cr in FY22. However, it’s important to note that the revenue generated from education and related activities decreased by 29% to INR 34.7 Cr.
The majority of Gradeup’s revenue in FY23, INR 119.3 Cr, came from “business support services” provided to BYJU’S parent company, Think & Learn Pvt Ltd. This revenue stream did not exist in FY22. Without considering these services, Gradeup faced a loss of INR 104 Cr. Additionally, Gradeup borrowed an additional INR 3 Cr from Think & Learn during the fiscal year.
The startup’s major expenses included employee benefits, which increased by 19% to INR 89.4 Cr, and advertising expenses, which declined by 64% to INR 19 Cr. However, Gradeup’s auditor, Lodha & Co, raised concerns about its ability to continue as a going concern, citing significant accumulated losses and current liabilities exceeding current assets.
Gradeup, acquired by BYJU’S in 2021, underwent rebranding to BYJU’S Exam Prep post-acquisition. These financial results emerge amid challenges faced by BYJU’S, including delayed financial statement filings, debt repayment issues, ED investigations, and legal cases.
In contrast, another company within the BYJU’S group, Great Learning, reported a net loss of INR 357.3 Cr in FY23. These financial figures come as BYJU’S discloses select FY22 numbers for its standalone operations and prepares for its annual general meeting on December 20 to seek approval for its financial statements for FY22.
