Byju’s plans to open more tutoring facilities in 2023 with an eye on profitability
- ByStartupStory | January 2, 2023
According to Ravindran, 2022 will be a “rocky year” for the corporation because of the macroeconomic developments that will take place in that year. By failing to submit FY22 results by September 2022, the borrower violated the terms of its $1.2 billion term loan B from abroad.
Byju’s was also forced to fire some 2500 workers from its product, content, media, and technology teams as a result of the momentum shift. The cost reductions will probably improve unit economics and provide the groundwork for the company’s IPO.
“The prevailing macroeconomic conditions and the integration of our acquired companies made this (layoffs) inevitable. We have also shifted our sales model towards inside sales, which is a result of BYJU’S strong brand visibility and deep customer trust,” said Raveendran.
Byju’s recently obtained $250 million from its current investors in a rights issue to support its expansion. Additionally, it received a Rs 300 crore loan without collateral from its 100% owned subsidiary, Aakash Educational Services.
Offline education centers are the cornerstone of the company’s growth and profitability ambitions through 2023. It operated more than 300 Aakash BYJU centers and opened more than 300 such centers in 2022 alone. The company anticipates having 850 offline centers in total by 2023, serving the K–12 and test-prep markets.
According to Raveendran, the company will attain the “elusive edtech trifecta,” which consists of traditional classrooms, digital platform(s), and hybrid centers. “Our classrooms, applications, and hybrid centers can now serve our 150 million learners.”
Raveendran provided an update on the company’s non-profit program BYJU’S Education For All and stated that more than 5.5 million underprivileged Indian students now have free access to a top-notch education. With Lionel Messi serving as the program’s brand ambassador, it is optimistic about being able to double the number.
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