Byju's is sinking! Reports a massive Rs 8,245 crore loss in FY22

Troubled edtech giant Byju's, which was once India's most-valued startup, is facing "material uncertainty" about its future.

The company's auditor, MSKA & Associates, expressed doubts about Byju's ability to continue as a going concern. 

Surge in losses and escalating debts

Byju's losses nearly doubled to Rs 8,245 crore from Rs 4,564 crore a year ago, despite a rise in consolidated income to Rs 5,298.43 crore from Rs 2,428.39 crore. The company's total financial liabilities soared to Rs 17,678 crore in 2021-22, up from Rs 3,116 crore in the previous year.

The auditor highlighted risks from a $1.2 billion overseas loan and ongoing net losses. However, Byju's India CFO, Nitin Golani, pointed to measures taken to improve financial conditions and the pursuit of necessary funding arrangements.

Operational struggles and cost-cutting measures

Byju's said it faced operational challenges with underperforming acquisitions like WhiteHat Jr. and Osmo, contributing significantly to its losses. The company has scaled down these businesses to cut losses.

However, another unit, Aakash (AESL), reported a significant 82% increase in profit, reaching Rs 79.5 crore in FY22. This is a notable rise from the Rs 43.6 crore profit in FY21.