Indian edtech giant Byju’s announced on Saturday that its core business revenue for the financial year ending March 2022 was $429.18 million. This figure fell significantly short of the unaudited projection of $1.25 billion that the company had made a year ago. Byju’s, which is currently the most valuable startup in India, has also faced delays in filing its financial accounts.
Key Takeaway
Byju’s, the edtech giant in India, has missed its revenue projection for the financial year 2021-2022. The company’s challenges include delays in filing financial accounts, high-profile departures, and concerns from investors about governance.
The Bengaluru-based startup has yet to submit its financial accounts to the local regulator. However, it released a press statement sharing partial data, revealing that the EBITDA loss for its core business decreased to $270.9 million.
Setbacks and Challenges
This failure to meet revenue projections and the prolonged delay in filing financial accounts is just the latest setback for Byju’s, which is currently grappling with several challenges. Last month, its CFO, Ajay Goel, left the company, following the abrupt departures of auditor Deloitte and three key board members in June.
Two investors of Byju’s, who requested to remain anonymous, have expressed their concerns about the delayed financial accounts and the startup’s governance issues. They are waiting for the company to address these matters.
Byju Raveendran, co-founder and CEO of Byju’s, acknowledged the difficulties faced by the company during the past year. He stated, “The takeaways from a uniquely belligerent year, which included nine acquisitions, are life-long learnings.” Raveendran emphasized the growth potential of edtech in India, the fastest-growing major economy, and expressed his commitment to sustainable and profitable growth in the future.
Prosus, one of Byju’s early backers and owner of more than 9% of the company, criticized the startup publicly in July, claiming that it had not evolved sufficiently and had disregarded investor advice and recommendations. As a result, Prosus reduced Byju’s valuation to $5.1 billion.
Deloitte, in its resignation letter, stated that Byju’s had not provided any communication regarding the resolution of the audit report for the financial year ending March 31, 2021. The auditor also noted a lack of updates on the readiness status of the financial statements and underlying books for the previous financial year.
To clear dues with its lenders, Byju’s is planning to sell many of the businesses it acquired in 2020 and 2021. Notable backers of Byju’s include Peak XV Partners, Lightspeed India, Sofina, BlackRock, UBS, and the Chan Zuckerberg Initiative.
