- The Bengaluru-based edtech startup claims that the capital invested in its business will result in profitability.
- The edtech giant is aiming for profitability by March 2023.
- She developed a plan to reduce her marketing and operating costs in order to generate profits.
The Indian edtech decacorn BYJU’S announced on Monday a new fundraising of 250 million dollars from its existing investors.
The Bengaluru-based startup claims that the capital invested in its business will result in profitability. It is currently a loss-making company.
“BYJU’S is now at that sweet spot in its growth story where unit economics and economies of scale are both in its favor. This means that the capital we are investing in our business now will result in a profitable growth and will create lasting social impact,” said Byju Raveendran, Founder and CEO of BYJU’S.
The edtech giant is aiming for profitability by March 2023. It has drawn up a plan to reduce its marketing and operating costs in order to generate profits.
As a result, 5% of its workforce, or about 2,500 workers, will be made redundant within six months, it announced last week. The move, the company said, is a way to avoid job layoffs.
According to FY21 audited financial statements released last month after an 18-month delay, its losses have increased 20-fold to ₹4,589 crore.
The company, however, claims that FY23 will be the best year for its financial growth. “Regardless of adverse macroeconomic conditions, 2022-23 is expected to be our best year in terms of revenue, growth and profitability. The continued support of our esteemed investors reaffirms the impact we have created thus far and validates our path to profitability,” said Raveendran.
Additionally, BYJU says it is on a path to achieve group-level profitability by March 2023 with a three-pronged approach.
One is to consolidate all its K10 India subsidiaries, refocus its marketing budget on its overseas markets and finally strengthen its internal sales team.
The other companies it acquired – Aakash Education and Great Learning, which focus on test preparation and development respectively, will continue to operate as stand-alone independent units.
Today, there are over 250 active BYJU tuition centers across India and the company aims to grow it to 500 centers by the end of this fiscal year.
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