FY22 report card: Edtech company Byju's losses widen to Rs 8,245.2 cr

Subsidiaries WhiteHat Jr, Osmo contributed to 45% of losses

Edtech company Byju’s losses widened to Rs 8,245.2 crore in 2021-22 (FY22) from Rs 4,564.38 crore in 2020-21 as subsidiaries WhiteHat Jr and Osmo underperformed, according to regulatory documents filed on Tuesday, almost 22 months after the reporting period ended.

The documents filed by Byju’s parent Think & Learn with the corporate affairs ministry showed that income grew 118 per cent year-on-year to Rs 5,298.43 crore in FY22. The results came at a time when Byju’s is looking to raise over $100 million from existing stakeholders but at a 90 per cent discount to its $22 billion valuation in last funding round in 2022, Bloomberg reported.

Byju’s, facing a host of legal and financial woes, is looking to sell fresh shares, including to founder Byju Raveendran, to raise funds to pay vendors and stabilise its business, the report said.

Its revenue increased by 120 per cent Y-o-Y to Rs 5,014.60 crore. In December 2023, the firm had presented these results to its investors in an annual general meeting.

Nitin Golani, India chief financial officer at Byju’s, said the total income grew 2.2x but highlighted that WhiteHat Jr and Osmo (Tangible Play) contributed to 45 per cent of the company’s losses.

“We have taken measures to improve our operating financial conditions. These businesses were scaled down significantly to cut losses in the subsequent years while other businesses continue to see growth,” Golani said.

Total expenses for FY22 rose by 94 per cent to Rs 13,668.44 crore, with significant increases in production and transportation costs (Rs 4,143.94 crore) and employee benefit expenses (Rs 3,552.22 crore).

The net cash flow used in investing activities in FY22 stood at Rs 11,705.23 crore against Rs 1,929.94 crore in FY21. Asset valuation, including tablets, SD cards, laptops, and tech-embedded devices, increased to Rs 613.36 crore in FY22 from Rs 252.48 crore in FY21.

Its Ebitda (earnings before interest, taxes, depreciation, and amortisation) improved from 171 per cent in FY21 to 126 per cent in FY22.

While Byju Raveendran holds 50.37 per cent share in the company, Divya Gokulnath has 10.52 per cent, Riju Ravindran owns 4.77 per cent, SLP Beta Holdings Cayman and MIH Ventures BV, Netherlands have 6.1 per cent).

Excluding WhiteHat Jr and Osmo, there was 3x growth in total income in FY22 versus FY21, and the Ebitda percentage improved from 163 per cent to 78 per cent.

While WhiteHat Jr’s income dropped to Rs 295.11 crore in FY22 from Rs 326.67 crore a year ago, Osmo saw its income decline to Rs 553 crore from Rs 600 crore in FY21.

Assets of Aakash and Great Learning grew 40 per cent and 77 per cent, respectively, post-acquisition. While Aakash’s revenue increased to Rs 1,491 in FY22 from Rs 1,065 crore in FY21, Great Learning’s revenue grew to Rs 628 crore in FY22 from Rs 354 crore a year ago.

The India market contributed Rs 3,464.19 crore as revenue in FY22 compared to Rs 987.67 crore in FY21. The US market provided revenue of Rs 1,058.10 crore in FY22 compared to Rs 795.59 in FY21, with additional contributions from the Middle East, Australia, and the UK.

“We would like to thank our students for the growth we have seen in FY22. Our subscriber base has grown 125 per cent Y-o-Y,” said Golani.

Continued net losses and accumulated losses, coupled with uncertainty related to litigation and its financial impact on the $1.2 billion Term Loan B facility, cast doubts about Byju’s ability to continue as a going concern.

The firm reported non-current borrowings of Rs 8,828.65 crore in FY22 compared to nil in FY21. The current financial liabilities were reported as Rs 3,845.04 crore in FY22 compared to Rs 442.87 crore in FY21.

According to its auditors, the management has taken measures to improve its operating financial condition and is in the process of securing funding and exploring sale of assets as needed.

Auditors have said they are confident regarding the future viability of the company. Based on legal opinion, the management is of the view that the Term Loan B will unlikely be required to be paid in the foreseeable future. Accordingly, these financial statements for FY22 have been prepared on a going-concern basis.

The documents also detailed the status of the search conducted, various notices, and summons received by the holding company and its officials from the Directorate of Enforcement (ED).

The management claimed to have submitted all information to the ED, receiving no further communication or orders from the authorities.