Byju's logo.
Credit: Reuters Photo
Edtech major BYJU'S has set the target to become profitable by March 2024 on account of consolidation and restructuring of the organisation and settlement on $1.2 billion loan, sources aware of the development said.
The company has undertaken exercise to reduce workforce by about 3,000-3,500 this month by ending duplication in roles across the organisation.
'Think and Learn Private Ltd (TLPL) restructuring will see the current operations spread across several business units streamlined into four core areas of K-12, test prep, online and hybrid. The business restructuring, aimed at matching resources with cash flows, will see the company achieve break-even by coming March, in fourth quarter of current fiscal,' a source said. BYJU'S declined to comment on a query sent in this regard.
TLPL operates under BYJU's brand name. BYJU'S had earlier set the target to become profitable by March 2023. BYJU'S booked a loss of Rs 4,588 crore for fiscal year ended March 31, 2021, 19 times more than the preceding fiscal.
The losses in the 2020-21 fiscal widened from Rs 231.69 crore in 2019-20. Revenues during FY21 dropped to Rs 2,428 crore from Rs 2,511 crore in FY20. But in the fiscal ending March 31, 2022, the company had announced increase of revenue by four-fold to Rs 10,000 crore. However, it did not reveal profit or loss numbers for that year.
The company has convened a meeting of shareholders in the second week of October to finalise its delayed financial results for 2021-22.
'BYJU'S is in talks with investors to hive off EPIC to help settle $ 1.2 billion Term Loan B. The company wants to dispose it off within 150 days. The proposal has gone to lenders and their response is awaited,' the source said.
Another source said that if required, BYJU'S may hive off Great Learning too, but it expects that the money raised through EPIC sale will meet its requirement.
'Besides fundraise, the company plans to focus restructuring and consolidation of 31 entities under it to optimise management bandwidth,' the source said.
The company has earlier announced consolidation of Meritnation, TutorVista, Scholar and HashLearn.