BYJU’s is in the advanced stages of raising USD 250 million at a valuation “lower than the USD 22 billion valuations” it last announced as the company struggles to repay a USD 1.2 billion term loan and turn profitable in 2023.
However, the USD 250 million round comes at a lower valuation and, according to sources, it cannot be at a “flat valuation,” which is why the ed-tech company is unable to raise the USD 500 million it was widely expected to raise.
To become profitable, BYJU’s is winding down the coding platform WhiteHat Jr, which it purchased for USD 300 million, as part of a restructuring and cost-cutting effort. The company stated that it was “merely optimising it.”
BYJU’s appears to be unable to meet its March 2023 deadline for achieving group-level profitability, as envisioned in its earnings in October last year and its quarterly results for the current fiscal year are once again delayed.
In October after firing 2,500 employees and consolidating its business in the country, Mrinal Mohit, CEO of BYJU’s India business, said that “these measures will help us achieve profitability in the defined time frame of March 2023.”
BYJU's stated that its top priority is to achieve “overall profitability by March 2023.”
However, with the company still struggling to stem growing losses, this appears to be impossible.
The company made Rs 4,530 crore in sales between April and July 2022. The company has not communicated about the pending results since then. For the fiscal year that ended on 31 March 2021, the ed-tech unicorn reported a loss of Rs 4,588 crore.