Riding the pandemic wave, Byju’s went on a buying spree in 2021, snapping up companies under the assumption that online learning would boom forever. But as restrictions eased and students returned to classrooms, the company’s ambitious gamble began to unravel.
Byju’s parent, Think & Learn Pvt., clocked in a lackluster Rs 5,015 crore in revenue for FY22, falling far short of its own Rs 10,000 crore target, according to sources. Worse still, losses ballooned to Rs 8,245 crore compared to Rs 4,564 crore the previous year.
The pandemic-era acquisitions, made when everyone was glued to screens, failed to deliver the expected synergy. This marked the start of Byju’s woes, leading to strained relations with lenders and delayed financial disclosures. While the company remains tight-lipped about its consolidated numbers, an official AGM is scheduled for Wednesday to formally approve the FY22 results.
Earlier in November, Byju’s standalone business reported an Ebitda loss of Rs 2,253 crore despite a revenue rise to Rs 3,569 crore for FY22. The once $22 billion darling of investors has seen its valuation plummet below $3 billion, with major backer Prosus losing faith.
Byju’s now faces a multitude of challenges: numerous lawsuits, a long road to profitability, poorly integrated acquisitions, and questions about its corporate governance. The question looming large is: can the edtech giant turn things around, or will it be swallowed by the weight of its own expansion?
