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Byju's burn $600 Million in FY21

Updated: Feb 18, 2023

Byjus's revenue grew 5% to Rs 2,280 crore ($287 million), of which 80% of revenue came from Edutech products. But the losses were 15X to about Rs 4,500 crore ($566 million).

Latest: After its auditor Deloitte reveals financial statements for 2021 which caused delayed recognition, Byjus made some changes to its revenue recognition from this year 2022.

  • Inclusion of “course fee” which made up 14% of Byju’s revenue in FY 2021.

  • Implementation of the yearly break up of ''Teacher's Fee'' which amounts to Rs 300 crore ($37.5 million)—approximately 3% of its overall expenses.

Why it matters: Changes in the streaming revenue and interest payments wiped 8% off Byju’s consolidated revenue of Rs 2,380 crore ($300 million) in 2020.

  • Byju’s could not register half of its reported revenue of Rs 1,156 crore (~$145 million) during the FY 2021 as this revenue comes from deferred payments, and that didn't qualify for registering in 2021. Whereas revenue that got excluded but the expenses were already accounted for in the period and increased its overall losses.

  • Moreover, the financial statements excluded expenses of Rs 109 crore (~$13.7 million), which in turn made overall losses to Rs 4,564 crore ($574 million)

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Details: Byju Raveendran (CEO & Founder) stated "Around 40% of the revenue got deferred. Otherwise, the growth would have been 60-65%.”

  • Byju's acquisition of Aakash Institute, showed fewer centers have been opened this year indicating reluctance to expand.

  • Also, WhiteHat Jr's losses contributed to around a third of Byju’s losses.

  • Deloitte charged an audit fee of Rs 3.5 crore (US$440,000) to account for some additional effort they incurred in the audit consequent to material incapacities.

Winding up: Byjus FY21 missed a lot in its overall revenue- Now it is hoping to change its overall growth in the financials for 2022 through recent changes in revenue recognition.


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