BYJU misses March 2023 deadline for group-level profitability, results are delayed again

Edtech firm BYJUs will not be able to meet the March 2023 deadline to reach group level profitability, as it envisioned in its earnings in October last year, reliable sources said Monday. In addition, results are again delayed for most months of the current fiscal year.

Sources told IANS that the company, which has so far laid off thousands of employees and implemented deeper cuts, is still unable to become profitable at a group level amid mounting losses.

In October, Mrinal Mohit, CEO of BYJU’S India, after laying off 2,500 employees and consolidating its operations in the country, said that “these measures will help us become profitable in the set time frame of March 2023”.

At the group level, BYJU’s had said achieving “overall profitability by March 2023” is the top priority.

However, this now seems impossible as the company still struggles to contain growing losses.

Last week, the edtech major laid off another 15 percent of its employees, or more than 1,000 people, mostly from its tech teams, as the company continues with phased layoffs to stay focused on growth in a global economic meltdown.

Between April and July 2022, the company posted a turnover of Rs 4,530 crore. Post that, there’s no communication from the company on ongoing results.

The edtech unicorn reported a loss of Rs 4,588 crore for the fiscal year ended March 31, 2021.

BYJU’s had claimed that it had gross sales of almost Rs 10,000 crore in FY22.

Meanwhile, according to sources, BYJU’s acquisition of Delhi-based offline test prep services provider Aakash for nearly $1 billion is still pending and Aakash Chaudhry, co-promoter and managing director of Aakash Educational Services Limited (AESL), has resigned from the board.

When reached, Aakash declined to comment.

In December, new reports emerged that BYJUs, which may have seen marked erosion from its last $22 billion market value, has not paid several of its suppliers in months.

According to Morning Context, “Some payments have been due since March and are having issues with their approval. In the eight months to October 2022, cumulative dues to vendors have exceeded Rs 90 crore”.

When reached, BYJU’s had not commented on this report.

In seemingly new trouble for BYJUs, some lenders had asked the edtech unicorn to pay back part of a $1.2 billion loan they recently bought while renegotiating the terms of the debt.

The question of creditors comes at a time when BYJU was in the process of restructuring the loan.

ALSO SEE:
Bike Bazaar raises $10 million in Series D funding round from German investment firm DEG
Adani Transmission reports 78% increase in Q3 net profit to ₹475 crore on one-off revenues