BackByju’s $22-billion valuation makes no sense to Harsh Goenka; Kiran Mazumdar-Shaw agrees
Harsh Goenka and Kiran Mazumdar-Shaw seem to be confused about how Byju’s is valued at $22 billion.
PremiumOne of India’s most valuable startups, Byju’s, has grabbed the attention of Harsh Goenka and Kiran Mazumdar-Shaw, but for all the wrong reasons. Two of India’s most prominent business personalities seem to be confused about how Byju’s is valued at $22 billion.
Byju's reported a loss of ₹4,588 crore for the fiscal year that ended on March 31, 2021, which is 19 times greater than the prior fiscal, and delayed the release of its audited financial accounts until September 2022. From ₹231.69 crore in the previous fiscal year, losses increased in the 2020–21 period. From ₹2,511 crore in FY20 to ₹2,428 crore in FY21, revenues decreased.
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The numbers confused Goenka, who tweeted, “Byju’s revenues - 2,280 crore; Byju’s losses- 4,588 crore (increases 17 times). That means you give me ₹1 and I will return ₹2. Valuation- $22 billion (number 1 among startups). Hottest sector to invest- edutech. Nothing is making sense to me! Can anyone explain please?"
Biocon chief Kiran Mazumdar-Shaw replied to his tweet, “It’s like virtual reality - now you see it now you don’t. Valuations just don’t stack up n yet real businesses are under valued! (sic)".
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Contrarily, Byju's claimed that revenue increased four-fold to ₹10,000 crore in the fiscal year ended March 31, 2022, but the company did not disclose its profit or loss figures for that period. According to Byju's, the losses in FY21 grew mostly as a result of deferring some revenue and suffering losses from WhiteHat Jr.
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Byju's co-founder and CEO Byju Raveendran told PTI that there was an impact of revenue recognition changes, which is recognition of streaming revenue over the period of consumption and credit sales, and EMI sales getting recognised after complete collection.
"These two are significant changes which have pushed out or deferred revenues of almost more than 40 per cent. When you take a look at the financials, you will see there is no growth from FY20 to FY21," he said.
(With agency inputs)
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