Bengaluru: Online tutoring app BYJU's net loss narrowed to ₹14.91 crore for the financial year ended March 2019, compared to ₹37.19 crore losses reported a year ago, according to documents filed with the Ministry of Corporate Affairs (MCA), sourced from business information platform Paper.vc.
In an earlier statement given to the press in May 2019, BYJU's mentioned that the company was profitable on a full-year basis. However, recent filings with the MCA show that BYJU’s is yet to make any profits on a consolidated accounting basis, although it was able to narrow down losses significantly. On a standalone accounting basis, BYJU's parent entity Think & Learn Pvt Ltd reported a net profit of ₹19.63 crore for FY19.
The startup, a unit of Think & Learn Pvt Ltd, also reported revenues of ₹1,306 crore in FY19, which is a two-fold increase compared to ₹471.18 crore reported in FY18. Most of the revenue growth at BYJU’s in FY19 was fueled by deeper penetration across India and significant growth in the number of paid subscribers, according to the company’s earlier statement in May.
In FY19, BYJU's total expenses went up two-fold to ₹1,376.54 crore as compared to ₹537.38 crore in expenses reported in FY18. A major chunk of BYJu’s expenses were reported under the “other expenses category", which increased to ₹814.68 crore in FY19, followed by employee expenses that also went up to ₹273.73 crore in the same year.
"We have exceeded our financial goals that we set at the beginning of the year. Expanding our base across smaller towns and cities and introducing new products have been pivotal to our growth. In the current financial year (FY20), we are on track to double our revenue to ₹3,000 crore. We will also be launching BYJU’s Online Tutoring, which will further accelerate growth and profitability in the coming year," said Mrinal Mohit, Chief Operating Officer, BYJU’S in a statement.
In July 2019, BYJU’s valuation had surged to $5.5 billion in its ongoing Series F round which increased significantly from the $3.5 billion valuation pegged in December 2018. In the ongoing Series F round, BYJU’s has secured nearly $460.8 million led by investors such as South Africa’s Naspers, private equity firm General Atlantic, and Canada Pension Plan Investment Board, according documents sourced from Paper.vc.
Investors and market experts say that the spike in BYJU’s valuation comes from its entry into the US market. Byju’s is also benefiting from Indian parents’ willingness to spend on education, especially in the K-12 segment. The company has already attracted more than 40 million students, assisting them to understand concepts in math, science and English.
Since its founding in 2008, BYJU's has raised more than $795 million from investors such as Naspers, Tencent, Verlinvest, Chan-Zuckerberg Initiative, Sequoia Capital, Lightspeed Venture Partners, Aarin Capital among others.