With its headquarters in Bangalore, the famous multinational educational technology company BYJU’S is dying a slow and awful death. In a recent statement, BYJU’S declared that they suffered a drastic loss of about Rs 4588 crores during the financial years 2020-2021.
What Is The Issue?
After delaying for one and a half months, BYJU’S finally released their financial audit report and yearly return records for 2020-21 on 14th September 2022. The statements showed that the company had secured an amount of Rs 2428 crores while it suffered a loss of about Rs 4588 crores during the annual period ranging from 2020 to 2021.
The loss happens to be 15 times greater than the previous year’s financial period (2019-2020) when it had suffered a loss of Rs 300 crores.
Statement Recorded By BYJU’S Founder
Byju Raveendran, the founder of the multinational EDtech company BYJU’S, said in an interview, “The audit delays were initially on account of multiple acquisitions; later, the auditors changed the revenue recognition model so that meant re-working the revenues.”
He added, “Lastly, because of the attention our audit got in the last three months, Deloitte went deeper into the numbers. The numbers have been passed without conditions.”
Also Read: BYJU’S Is Collecting Used Phones To Fix Them For Underprivileged Children
Defrauding Indian Parents
Burdened with substantial financial losses and business loans, BYJU’S resorted to unethical means to meet their payment commitments. Reports indicate that they mostly tricked middle-class Indian parents who would leave no stone unturned regarding their children’s future.
The naive parents would agree to invest without knowing about the recurring costs, interests, and EMI schemes. When they were unable to keep up, the company blocked them and moved on to trick other families.
Is The Declining Pandemic Responsible For BYJU’S Losses?
Before and during the worldwide pandemic of COVID-19, BYJU’s was swiftly pacing toward prosperity. The quarantine period during the pandemic led to the discovery of a virtual mode of education for the students, and it gave the impression to the company diplomats that the education business might entirely change to online mode.
But with the deadening of the pandemic and the withdrawal of the quarantine restrictions, companies are back to business in their usual offline mode. Thus, the shift to offline mode business narrowed the company’s prospects and sources of income and all the funding were used up in buyouts.
FY21 Reports Published On Media Were Misleading: Says BYJU’S Co-founder
Divya Gokulnath, BYJU’S co-founder, claimed in an interview that the media only pointed out financial losses during the financial year 2020-2021.
She said, “I am sure you would have ‘seen’ our results. But have you seen the complete picture? Because just like for movie reviews, sensationalism results in more clicks than truth in this age of 280-character reading attention spans.”
She added, “But some of the headlines are another matter. It’s easy to forget that we are 18 months post FY21 and that BYJU’S has grown more than 4 times in this span. Or that our ‘widening losses’ in FY21 have been cut to half in FY22.”
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Disclaimer: This article is fact-checked
Image Credits: Google Photos
Feature Image designed by Saudamini Seth
Source: The Times Of India, The Economic Times & NDTV
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