Byju’s reports Rs 8,245 crore loss for FY’22

Struggling edtech company Byju’s has reported a massive loss of Rs 8,245.2 crore for FY '22. The firm's losses stood at Rs 4,564 crore in FY’21, posting a surge of 80.6% in its losses. The company’s delayed filings with the Ministry of Consumer Affairs (MCA) reported the numbers. Revenue from operations increased to Rs 5,014 crore in FY’ 22 as compared to Rs 2280 crore in FY’ 21.

The losses are not the only problems for the edtech giant to fight right now, as it is already swimming its way through massive high tides and deep waters.

Last week, the company revealed before India’s bankruptcy tribunal that it has moved an arbitrator to decide on the Rs 158 crore payment dispute with the Board of Control for Cricket in India (BCCI). On November 28, 2023, BCCI took Byju’s to the National Company Law Tribunal (NCLT) over alleged unpaid dues amounting to Rs 158 crore under their sponsorship contract with the Indian cricket team.

In 2019, Byju's signed a three-year jersey sponsorship deal with BCCI, replaced by Fantasy gaming platform Dream11 in June 2023. Reports further suggest that Byju’s had in January this year said it would not renew its branding partnerships as it looks to cut costs to achieve profitability as early as next fiscal year.

Apart from the cricket association, the company is also on back-and-forth terms with its lenders. With regard to the firm's continuing losses and disputes with lenders over the repayment of a USD 1.2 billion term loan B, Byju’s audit firm MSKA & Associates noted in the financial report, “These events and conditions, indicate that a material uncertainty exists that may cast significant doubt on Group’s ability to continue as a going concern.”

It further said that the management has undertaken various measures to improve its operating financial condition, is also in the process of securing necessary funding arrangements and exploring sale of assets as needed, and hence is confident regarding the future viability of the Group. “Further, basis a legal opinion, the management is of the view that it is unlikely that the TLB loan will be required to be paid in the foreseeable future.”

For the uninitiated, in November 2021, Byjus had bagged a term loan B (TLB) funding round, where it had raised USD 1.2 Bn in a TLB round. Since then, the edtech major was in constant conflicts with its lenders over the same and multiple negotiations to alter the loan repayment terms failed over the last few months of 2023 as well.

But that was not all.

Among other troubles, several media reports noted that last year the company saw three members of the board, as well as its official auditor Deloitte, resigning, which just added to the struggles for the brand. Following Deloitte’s exit, Byju’s appointed BDO (MSKA & Associates) as its statutory auditor for five years from fiscal year 2022.

These developments were then followed by The Enforcement Directorate (ED) issuing show cause notices to Byju’s parent Think & Learn and its chief executive Byju Raveendran for alleged violations of Foreign Exchange Management Act (FEMA) involving an amount of Rs 9,362.35 crore.