Byju’s financial year 2022 losses cross Rs 8,000 crore, up 80% in year | India Business News

MUMBAI: Losses of struggling edtech startup Byju’s ballooned to Rs 8,245 crore on a consolidated basis in FY22, the company’s much delayed filings with the Ministry of Corporate Affairs (MCA) on Tuesday showed. The firm’s losses stood at Rs 4,564 crore in FY21. Revenue from operations increased to Rs 5,014 crore in FY22 from Rs 2,280 crore in the year-ago period.
The startup’s auditor BDO (MSKA & Associates) cited the firm’s continuing losses and disputes with lenders over the repayment of a $1.2 billion term loan B as “material uncertainty” which “may cast significant doubt on the group’s ability to continue as a going concern”. “However… the management has undertaken various measures to improve its operating financial condition, is also in the process of securing necessary funding arrangements and exploring sale of assets as needed, and hence is confident regarding the future viability of the group,” the auditor said.
Amid a severe liquidity crunch, Byju’s is in discussions with investors to raise anywhere between $150-300 million through a rights issue at a valuation of under $2 billion – nearly a 90% drop from its peak valuation of $22 billion, sources said.
The company’s FY22 losses – which recorded a year-on-year rise of over 80% – come on the back of increased expenses, which shot up to over Rs 13,000 crore during the year from Rs 7,027 crore in FY21. In a note, Byju’s said that the performance of its subsidiaries WhiteHat Jr. and Osmo weighed on its financials as well. The two entities, which are counted among the key acquisitions made by the company, jointly posted losses of more than Rs 3,000 crore in FY22. “These businesses were scaled down significantly to cut losses in subsequent years while other businesses continue to see growth,” chief financial officer Nitin Golani said in a statement.
Recent filings showed that US-based asset manager BlackRock, which holds a minority stake in Byju’s, slashed the company’s valuation to $1 billion as of October 2023, adding to the spate of valuation markdowns the company has been seeing over the past months. Once a celebrated startup, the company is battling a series of crises including scrutiny of authorities, senior level exits and long drawn negotiations with its lenders over the repayment of $1.2 billion loan. Byju’s has fired more than 5,000 employees since October 2022.

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