- The Bengaluru-based edtech startup says the capital invested in its business will result in profitability.
- The edtech giant is aiming for profitability by March 2023.
- It has put in place a plan to reduce its marketing and operating costs to make a profit.
Indian edtech decacorn BYJU’S on Monday announced a new fund-raising of $250 million from its existing investors.
The Bengaluru-based startup says the capital invested in its business will result in profitability. It is currently a loss-making company.
“BYJU’S is now at that good point in its growth story where both the unit economy and economies of scale are at an advantage. This means that the capital we invest in our business now will result in profitable growth and create sustainable social impact,” said Byju Raveendran, Founder and CEO of BYJU’S.
The edtech giant is aiming for profitability by March 2023. It has put in place a plan to reduce its marketing and operating costs in order to turn a profit.
As a result, 5% of the workforce, or about 2,500 employees, will be laid off over the next six months, it announced last week. According to the company, this move is a way to avoid job layoffs.
According to audited FY21 financial data released last month after an 18-month delay, losses increased 20-fold to ₹4,589 crore.
However, the company says FY23 will be the best year for its financial growth. “Regardless of the adverse macroeconomic conditions, 2022-23 will be our best year in terms of sales, growth and profitability. Continued support from our valued investors reaffirms the impact we have created so far and validates our path to profitability,” said Raveendran.
Further, the BYJU says it has embarked on a path to achieve group-level profitability by March 2023 with a three-pronged approach.
One is by consolidating all subsidiaries of K10 India, focusing the marketing budget on the overseas markets and finally increasing the strength of the internal sales team.
The other companies it has acquired – Aakash Education and Great Learning, which are respectively engaged in test prep and in-service training, will continue to operate as standalone, independent units.
Today, there are more than 250 active BYJU’S education centers across India and the company aims to scale it up to 500 centers by the end of this fiscal year.
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