Online education during Corona opens the fortunes of edtech companies. Suddenly high demand boosted edtech companies’ revenues.
Baiju finally released financial results for the financial year 2020-21 on Wednesday after a one-year delay.
Online education during Corona opens the fortunes of edtech companies. Suddenly high demand boosted edtech companies’ revenues. But with schools reopening post-Covid-19, the heyday of edtech companies is over. Funding dries up at startups and layoffs begin. But the news coming in now is not good at all for startups especially the edtech sector. The country’s largest edtech company Byju’s finally released its financial results for the financial year 2020-21 on Wednesday after a one-year delay.
The company’s financial results are revealing the state of the entire sector. Byjus’ revenue fell 14 percent to Rs 2,428 crore in 2020-21. The company’s revenue in the previous financial year was Rs 2704 crore. Baiju’s losses increased 17 times in the financial year 2020-21. It made a net loss of Rs 4500 crore. The loss was Rs 262 crore a year ago i.e. in 2019-20.
What causes the company’s losses?
The company also gave an explanation behind this loss. Byju Ravindran, founder and CEO of BYJU, says the losses are more visible due to changes in accounting practices. And the revenue figures are not reflecting the significant growth part of the business. About 40 percent of revenue will be adjusted in the coming years.
This will lead to strong financial growth and better statistics. Rivandran said around 40 percent of revenue will be generated in the coming years due to Covid-related business model changes. The accounts of the company have been audited by Deloitte Haskins & Sales It is one of the four largest tax consulting firms in the world.
Byju has a market value of $22.6 billion. And it is constantly acquiring. In the last 18 months, Byju’s Aakash Education Services Ltd has acquired Great Learning, Epic, Tinker, Scholar, Topper, Osmo and Gradup among others. Baiju Rabindran, Divya Gokulnath and Riju Rabindran founded Baiju in 2011. Baijus is the largest educational institution in the country. And its financial results reveal the picture of the entire sector.