BYJU’S Aims to Achieve Profitability by March 2024 Through Restructuring and Consolidation

• ByStartupStory     |    October 3, 2023

Leading edtech firm, BYJU’S, has set a new target to achieve profitability by March 2024 following a series of consolidation efforts and a $1.2 billion loan settlement. The company’s ongoing restructuring includes reducing its workforce by approximately 3,000 to 3,500 employees this month, aimed at eliminating role duplications across the organization.

According to informed sources, “Think and Learn Private Ltd (TLPL),” which operates under the BYJU’s brand, is undergoing a substantial restructuring process. This initiative will streamline current operations, which are spread across various business units, into four core areas: K-12 education, test preparation, online courses, and hybrid learning solutions. The strategic restructuring, designed to align resources with cash flows, is expected to propel the company towards break-even by March, marking the fourth quarter of the current fiscal year.

BYJU’S declined to provide official comments in response to queries about these developments. The company had previously set a profitability target for March 2023 but is now adjusting its timeline to March 2024.

In the fiscal year ending March 31, 2021, BYJU’S reported a loss of Rs 4,588 crore, a substantial increase compared to the preceding fiscal year. This resulted in losses widening by a factor of 19 from Rs 231.69 crore in 2019-20. While revenue decreased to Rs 2,428 crore in FY21 from Rs 2,511 crore in FY20, the company reported a four-fold increase in revenue to Rs 10,000 crore for the fiscal year ending March 31, 2022. However, BYJU’S did not disclose specific profit or loss figures for that period.

The company has scheduled a shareholder meeting in the second week of October to finalize its long-delayed financial results for 2021-22.

BYJU’S is currently in discussions with investors regarding the potential divestment of EPIC, a move intended to facilitate the settlement of its $1.2 billion Term Loan B. The company aims to complete the EPIC sale within 150 days and is awaiting responses from lenders. Additionally, there are considerations to potentially divest Great Learning if necessary, although it is anticipated that the proceeds from the EPIC sale will meet the financial requirements.

In addition to fundraising initiatives, BYJU’S is prioritizing the consolidation and restructuring of its 31 subsidiary entities to optimize management efficiency. The company had previously announced the consolidation of entities such as Meritnation, TutorVista, Scholar, and HashLearn.

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