“Byju’s Reveals ₹2,250 Crore Loss Amid Debt Dispute and Post-Covid Realities”
Indian education startup Byju’s has disclosed financial results indicating a marginal reduction in losses, highlighting the challenges the firm faces amidst a dispute with creditors over a $1.2 billion loan and a post-Covid slowdown.
In its first financial results in years, Indian education technology startup Byju’s has revealed that losses at its parent company, Think & Learn Pvt., narrowed only slightly during the financial year ending March 2022. The losses were reported at ₹2,250 crore ($271 million), compared to ₹2,400 crore the previous year. Despite this, the firm’s total income more than doubled, reaching ₹3,570 crore.
These financial results underscore the challenges facing Byju’s, once considered a standout success in India’s startup economy. The company has been dealing with a debt dispute with creditors over a $1.2 billion loan, which led to legal action. This dispute has also drawn significant attention to founder Byju Raveendran, who rose from being a tutor to leading India’s most valuable tech startup.
At the height of the pandemic, Byju’s experienced tremendous demand for its online education services as schools and universities closed. The company aggressively expanded, including acquisitions in the United States and other global initiatives. However, growth has slowed since the return to in-person classes, and the ongoing legal dispute has only added to the company’s challenges.
The delay in submitting financial results attracted regulatory scrutiny and led to the resignation of Deloitte Haskins & Sells as the company’s auditor. In April, Indian authorities raided Byju’s offices in Bengaluru, seizing laptops and publicly linking the education tech startup to potential foreign exchange violations. This resulted in lawsuits from US-based investors who accused Byju’s of concealing a substantial amount of funds.
One of Byju’s major investors, Prosus NV, significantly reduced the value of its stake in June, marking the startup’s total valuation at $5.1 billion, a notable decline from its $22 billion valuation just last year. These financial disclosures highlight the complex landscape that Byju’s navigates as it grapples with financial challenges and legal disputes.
Sources By Agencies
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