Byju’s warns about future after FY22 loss widens to ₹8,245 cr

livemint.com:

BENGALURU : Edtech company Byju’s warned about its ability to continue operations after finally posting its financial numbers for fiscal year 2021-22, only to report that its losses had ballooned to ₹8,245 crore from ₹4,564 crore in the year prior. Hurt by continuing losses from operations combined with debt-related risks, Byju’s said in a regulatory filing on Tuesday that a “material uncertainty" existed. “These events and conditions cast significant doubt on the company’s ability to continue as a going concern," the company said in a filing with the ministry of corporate affairs.

Byju’s reported consolidated total revenue of ₹5,298.43 crore for FY22, up from ₹2,428.39 crore in FY21. “While we are happy that our total income has grown 2.2x, we are also aware of our underperforming businesses like Whitehat Jr. and Osmo, which contribute to 45% of the losses," said Nitin Golani, Byju’s India chief financial officer.

“… these businesses were scaled down significantly to cut losses in the subsequent years while other businesses continue to see growth," he said. Byju’s dismal full-year results come after a lengthy dispute with its lenders as a result of several technical defaults. Since June, Byju’s has stopped servicing interest payments on its loans and has been trying to negotiate repayments with lenders.

Byju’s, which operates under the parent company Think and Learn Pvt. Ltd, was once India's most-valued startup with an estimated worth of about $22 billion. Over the past few years, though, it has been grappling with various challenges, including difficulties in raising capital, meeting payroll obligations, and managing a debt exceeding a billion dollars.