The company says that this entire loss is visible due to the loss in ‘Whitehat’
The audit report of edtech startup Byju’s is released with a delay of one year. The report shows that the loss of this company has increased up to 17 times and this loss has reached Rs 4500 crore. In the previous year, this loss was Rs 262 crore. This loss was seen on the earning of Rs 2428 crore.
The company says that this entire loss is visible due to the loss in ‘Whitehat’. WhiteHat runs a coding class business for kids that Byju’s bought in 2020 for USD 300 million. Byju’s loss was 8.9 per cent in FY19.
Byju’s founder and CEO, Byju Raveendran told the Times of India, “Most of our acquisitions (the companies that have been bought) were moving very fast, but they were making losses. Looking at the current growth, the deficit is expected to reduce or come down in FY 2022.”
According to the report, Byju’s has spent around USD 3 billion on the purchase of 20 companies. This includes the USD 1 billion expense in which Aakash Education Services was bought last year. Last year itself, Great Learning Company was also acquired for USD 600 million. Great Learning is famous for online higher and professional education. It was acquired by Byju’s last year.
Byju’s is a USD 22 billion company according to the most recent valuation. This company is India’s most valuable startup. But due to the delay in financial audit for the last several months, the concern had increased. Byju’s said it has received audit reports for the 2021 fiscal year from auditors Deloitte & Sales. It was said that after the release of this report, all the concerns regarding the business of the company will be removed.
Byju’s CEO Raveendran said the delay in the audit report was because several companies had been acquired which had to be included in the expenses. There was also a change in the revenue policy due to the acquisition. He said that the calculation of earning from online courses will not be done so quickly and information will be available about it with time. Some customers also pay money on EMI, whose earnings will be known later.