Think & Learn Pvt Ltd, the parent company of India’s edtech giant BYJU’S, experienced a substantial surge in its consolidated revenue from operations in the fiscal year 2022, marking a twofold increase from the previous year. However, this growth was accompanied by a significant rise in losses, raising concerns among shareholders and stakeholders. The company’s recent challenges, including shareholder resignations and a change in auditors, have further heightened the scrutiny surrounding its financial health. This article delves into the FY22 financial performance of Think & Learn Pvt Ltd and the challenges faced by BYJU’S in the competitive edtech landscape.

Financial Performance Highlights

In FY22, Think & Learn Pvt Ltd reported consolidated revenue from operations of Rs 5,015 crore, representing a twofold increase from Rs 2,280.2 crore in the previous fiscal year. This surge in revenue is a testament to the continued popularity and demand for BYJU’S learning solutions, which have gained prominence in the Indian education sector.

However, alongside the revenue growth, the company witnessed a substantial increase in losses. The losses swelled by 1.8 times, reaching Rs 8,245 crore in FY22, compared to Rs 4,564 crore in FY21. The stark contrast between revenue growth and escalating losses has raised eyebrows and led to increased scrutiny of the company’s financial management and operational efficiency.

Challenges and Shareholder Dissatisfaction

Think & Learn Pvt Ltd, particularly BYJU’S, faced shareholder dissatisfaction in recent times, as evidenced by several resignations from the board, including key shareholders PeakXV and Prosus. The resignations were attributed to breakdowns in communication, indicating internal challenges within the company.

Additionally, Deloitte, the company’s auditor, stepped down, expressing concerns about the readiness of the company’s books for audit. The departure of a major auditing firm raised further questions about transparency and adherence to financial reporting standards.

Annual General Meeting (AGM) and Business Overview

The company held its AGM on December 20, where nearly 60 shareholders attended to discuss and approve the long-delayed FY22 financial statement. BYJU’S founder Byju Raveendran provided an overview of the business and its challenges during the meeting. The CFO, Nitin Golani, presented the audit details, while India CEO Arjun Mohan shared business updates and plans.

The AGM was a critical event for BYJU’S, considering the shareholder dissatisfaction and concerns raised by the recent resignations and changes in auditors. The Chicago-based BDO, the newly appointed auditor, addressed queries from shareholders during the meeting, providing insights into the company’s financial health.

Strategic Moves and Liquidity Crunch

Facing a liquidity crunch, BYJU’S founder Byju Raveendran reportedly secured $12 million by pledging properties to pay salaries. This move highlights the challenges the company is grappling with, necessitating innovative measures to address immediate financial needs.

In November, BYJU’S announced part of its audited financial results, covering a period that included nine acquisitions. The company reported that total income from its core business reached Rs 3,569 crore in FY22, a significant increase from Rs 1,552 crore in the previous fiscal year. The EBITDA loss for the core business decreased by 6% to Rs 2,253 crore. However, the company did not disclose its consolidated revenue and profit/loss numbers, leaving stakeholders eager for a comprehensive and transparent financial disclosure.

BYJU’S parent company, Think & Learn Pvt Ltd, has witnessed remarkable growth in its consolidated revenue from operations, underscoring the continued demand for its edtech offerings. However, the significant increase in losses, coupled with challenges such as shareholder resignations and changes in auditors, raises concerns about the company’s financial health and operational management. The recent AGM and strategic moves to address a liquidity crunch indicate that BYJU’S is navigating a critical phase, where transparency, effective communication, and sound financial strategies will be crucial for regaining stakeholder confidence. As the edtech giant continues to evolve, its ability to address these challenges will determine its trajectory in the competitive landscape of the Indian education technology sector.

By Admin

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