Byju's net loss soars to Rs 8,245 cr in FY22, revenue jumps 54.2%: Report

Edtech firm Byju's has finally disclosed its financial results for the fiscal year 2022 after a significant delay of 22 months. The figures reveal a stark contrast between the company's revenue and net losses. Byju's consolidated revenue saw a surge of 54.2 percent, climbing from Rs 2,428 crore in FY21 to Rs 5,298 crore in FY22. However, this growth was overshadowed by the company's net losses, which increased from Rs 4,564 crore in FY21 to a staggering Rs 8,245 crore in FY22, Moneycontrol reported.

The financial disclosures come at a time when Byju's has been grappling with various corporate challenges. The company's valuation took a hit as global investment management firm BlackRock reduced its valuation of Byju's to $1 billion, a sharp decline from the $22 billion peak it reached in early 2022. This devaluation followed similar downgrades by other investors, including tech investor Prosus, which marked down the value of its stake in Byju's to less than $3 billion—an 86 percent decrease from the previous valuation.

Despite these setbacks, Byju's core business operations (excluding acquisitions) reported a 2.3 times growth in revenue, reaching Rs 3,569 crore up from Rs 1,552 crore in the previous fiscal year. The company also managed to reduce its EBITDA loss from Rs 2,406 crore in FY21 to Rs 2,253 crore in FY22, improving the EBITDA margin from -155% to -63%.

According to a Bloomberg report, Byju's is currently in the process of securing $100 million in funding, aiming for a valuation of under $2 billion. This marks a significant decrease of 90% from its previous funding round, during which the company achieved a valuation of $22 billion.

The company's troubles were compounded by a challenging environment where venture capital funding became scarce, and the demand for online learning services waned as the world adjusted to post-pandemic norms. This led Byju's to undertake drastic cost-cutting measures, including laying off thousands of employees over the past two years. These layoffs were part of a broader strategy to navigate through financial turbulence, which also saw the company considering the sale of its unit, Epic, to raise approximately $400 million.

The financial squeeze prompted Byju's to revise employee notice periods, signaling the urgency of its situation. As the company grappled with its cash crunch, it faced additional scrutiny from investors and authorities alike. The Enforcement Directorate issued show cause notices for alleged FEMA violations, and the company's valuation took a hit, with investor Prosus marking it down from a peak of $22 billion to just above $8 billion.

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