Due to online learning during the Corona period, the fortunes of edtech companies were opened. The sudden high demand boosted the revenues of edtech companies.
Byju’s has finally released the financial results for the financial year 2020-21 on Wednesday after a delay of one year.
Due to online learning during the Corona period, the fortunes of edtech companies were opened. The sudden high demand boosted the revenues of edtech companies. But the good days of edtech companies were over as soon as schools reopened after Kovid-19. Funds started drying up in startups and layoffs started. But the news that is coming out now is not at all good for the startups especially the edtech sector. The country’s largest edtech company Byju’s has finally released the financial results for the financial year 2020-21 on Wednesday after a delay of one year.
The financial results of the company are revealing the condition of the entire sector. The revenue of Byjus has declined by 14 per cent to Rs 2428 crore in 2020-21. In the previous financial year, the company’s revenue was Rs 2704 crore. Byju’s loss has increased 17 times in the financial year 2020-21. It has incurred a net loss of Rs 4500 crore. A year ago i.e. in 2019-20, this loss was Rs 262 crore.
What is the reason for the loss of the company?
The company has also given a clarification behind this loss. Byju Ravindran, Founder and CEO, BYJU, said the losses are visible due to changes in accounting practices. And the revenue figures are not reflecting the share of significant growth in the business. About 40 per cent of the revenue will be adjusted in the coming years.
This will lead to strong financial growth and better figures. Rivandran has said that about 40 percent of the revenue will be generated in the coming years due to the change in the Kovid-related business model. The company’s accounts have been audited by Deloitte Haskins & Sales. It is one of the four largest tax consulting companies in the world.
Byju’s has a market value of $22.6 billion. And it’s constantly making acquisitions. In the last 18 months, Byju’s has acquired Aakash Education Services Ltd, Great Learning, Epic, Tinker, Scholar, Topper, Osmo and Gradup etc. Byju Ravindran, Divya Gokulnath and Riju Ravindran founded Byju in 2011. Byju’s is the largest education company in the country. And its financial results reveal the picture of the entire sector.