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Byju's records 80% growth in net sales, 30 times jump in losses

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The unicorn, operated by Bengaluru-based Think and Learn Private Limited, pocketed Rs 2,380 crore income in FY20 as against Rs 1,305 crore in the previous year.

Byju's records 80% growth in net sales, 30 times jump in losses
Edtech giant Byju’s recorded nearly 80 percent growth in consolidated net sales in the financial year 2019-20 as compared to the previous year. The unicorn, operated by Bengaluru-based Think and Learn Private Limited, pocketed Rs 2,380 crore income in FY20 as against Rs 1,305 crore in the previous year.
According to its regulatory filing, device sales generated the highest revenues for Byju’s in FY20. Around 63 percent of the company's revenue, Rs 1,675.7 crore, came from the sales of tablets and SD cards that are usually sold to students as part of the package. In FY19, the sale of devices accounted for 55 percent of the startup's business.
However, the expenditure of Byju’s surpassed its earnings in FY20. The annual expenses of the company shot up by a massive 119.50 percent to around Rs 3,022 crore during 2019-20. A large portion of the revenue and funding from institutional investors was spent on advertising. Consequently, the consolidated losses for Byju’s swelled nearly 30 times. The startup posted a loss of Rs 262 crore in FY20 as compared to Rs 8.82 crore in FY19.
Nonetheless, the unicorn, according to market experts, has recorded a huge jump in revenue during 2020-21 in the wake of the COVID-19 pandemic and subsequent growth in online classes.
According to CB Insights data, as of June 2021, Byju's is the eleventh most valuable startup in the world. Recently, Byju’s also became India's most valuable unicorn startup with a valuation of $16.5 billion, surpassing fintech company Paytm's $16 billion valuation. Byju’s nearest Indian competitor Unacademy is worth only $3.5 billion.
Byju’s is also trying to get a foothold in the international edtech space and to this end, the startup recently acquired California-based reading platform Epic.
Earlier this year, Byju’s raised US$1.5 billion from UBS Group, Abu Dhabi sovereign fund ADQ, Blackstone Group among others, and US$1 billion from investors led by Baron Funds, Facebook co-founder Eduardo Saverin’s B Capital Group, and US-based investment hedge fund XN Exponent Holding.