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Edtech unicorn Byju’s will be setting up more physical tuition centres and is “working very hard” to achieve profitability by 2023, said co-founder and chief executive Byju Ravindran in a year-end note to employees. While he did not set a specific date for turning profitable, in October he had hinted at a March deadline. In FY21, the Tiger Global-backed firm saw its losses widen to ₹4,589 crore from loss of ₹232 crore in the year ago. The edtech major is yet to file its financial results for FY22 with the Registrar of Companies.
To meet its profitability target, Byju’s has pivoted from its exponential growth strategy to focus on sustainable growth – something it had not planned for before 2024. “Macroeconomic changes of 2022 meant we had to embark on the path to profitability this year itself,” said Ravindran. Failure to file the FY22 results by September breached the covenants for its overseas $1.2 billion term loan B, Bloomberg said in a report.
However, the shift in strategy also forced Byju’s to lay off nearly 2,500 employees across product, content, media and technology teams. Cost-cutting measures are likely to help achieve better unit economics and prepare the ground for its initial public offering. “The prevailing macroeconomic conditions and the integration of our acquired companies made it (layoffs) inevitable. We shifted our model towards inside sales, which is a result of Byju’s strong brand visibility and deep customer trust,” said Raveendran.
Byju’s recently raised $250 million through a rights issue from existing investors to fuel growth. It secured ₹300 crore via a collateral-free loan from its wholly-owned subsidiary Aakash Educational Services. It has opened over 300 physical centres in 2022 alone.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
