Edtech giant BYJU’S has set a target to become profitable by March 2024 following the consolidation and restructuring of its organization and the settlement of a $1.2 billion loan, sources aware of the development said.
The company this month undertook an exercise to reduce its workforce by about 3,000 to 3,500 by eliminating duplication across the organization.
“The restructuring of Think and Learn Private Ltd (TLPL) will ensure that its current operations, spread across various business units, are streamlined into four core areas: primary and secondary education, test preparation, online and hybrid. The corporate restructuring, aimed at matching resources with cash flows, will see the company reaching break-even by March, in the fourth quarter of the current fiscal,” a source said.
BYJU’S declined to comment on a query sent in this regard.
TLPL operates under the brand name BYJU.
BYJU’S had previously set a target of becoming profitable by March 2023. BYJU’S posted a loss of Rs 4,588 crore for the fiscal year ended March 31, 2021, 19 times more than the previous fiscal year.
The losses in the financial year 2020-2021 increased from Rs 231.69 crore in 2019-2020. Revenues during FY21 fell to Rs 2,428 crore in FY20 from Rs 2,511 crore. But at the fiscal end on March 31, 2022, the company had announced a four-fold increase in revenue to Rs 10,000 crore. However, it did not announce profit or loss figures for that year.
The company has convened a shareholders meeting in the second week of October to finalize its deferred financial results for 2021-2022.
“BYJU’S is in discussions with investors to divest EPIC and help settle $1.2 billion Term Loan B. The company aims to divest within 150 days. The proposal has gone to the lenders and their response is awaited” , the source said.
Another source said BYJU’S could also divest Great Learning if necessary, but expects the money raised through the sale of EPIC will meet its requirements.
“In addition to fundraising, the company plans to focus on the restructuring and consolidation of its 31 underlying entities to optimize management bandwidth,” the source said.
The company previously announced the consolidation of Meritnation, TutorVista, Scholar and HashLearn.
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