Edtech decacorn Byju’s raises $250 million from existing investors
- The Bengaluru-based edtech startup says that the capital invested in its business will result in profitability.
- The edtech giant is targeting profitability by March 2023.
- It has put together a plan to reduce its marketing and operating costs in order to turn in a profit.
AdvertisementIndian edtech decacorn BYJU'S on Monday announced a new fundraise of $250 million from its existing investors.
The Bengaluru-based startup says that the capital invested in its business will result in profitability. It’s currently a loss-making company.
“BYJU’S is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favour. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact,” said Byju Raveendran, founder and CEO of BYJU’S.
The edtech giant is targeting profitability by March 2023. It has put together a plan to reduce its marketing and operating costs in order to turn in a profit.
As a result, 5% of its workforce, or roughly 2,500 workers, will be let go in the following six months, it announced last week. This move, the company said, is a way to avoid redundancies in job roles.
As per the audited FY21 financials that it released last month after an 18-month delay, its losses widened by 20 times to ₹4,589 crore.
The company however says that FY23 will be the best year for its financial growth. “Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability,” said Raveendran.
Further, the BYJU’s says that it has embarked on a path to achieve group-level profitability by March 2023 with a three-pronged approach.
One is by consolidating all its K10 India subsidiaries, retargeting marketing budget towards its overseas markets and lastly increasing the strength of its inside sales team.
The other companies it has acquired – Aakash Education and Great Learning, which are respectively into test-prep and upskilling, will continue to operate as stand-alone independent units.
AdvertisementToday, there are more than 250 active BYJU’S tuition centres across India and the company aims to scale it up to 500 centres by the end of this financial year.
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