Byju’s has claimed to achieve a two-fold jump in its revenue for the financial year ended on March 31, 2020. The Bengaluru-based edtech unicorn had clocked Rs 1,306 crore in operational revenue in the previous fiscal year.
Such claims come at a time when edtech firms have been recording spurt in usages as an effect of a tailwind of the ongoing lockdown due to covid-19 pandemic. During March and April, it added 13.5 million new users.
“We have met our revenue target of Rs 2,800 crore. This has happened even when our consumer (students) and the purchaser (parents) are different,” said Divya Gokulnath, co-founder of Byju’s, in an interview with Business Insider.
Byju’s had posted standalone profits of Rs 20.16 crore during the year ended March 2019. However, it hasn’t revealed any details on profitability or expenditure for FY20.
According to Fintrackr, its total expenses had grown 2.6X from Rs 537.4 crore in FY18 to Rs 1,376.5 crore in FY19 out of which advertising and promotion accounted for about 33%.
While we aren’t sure about what exactly triggered a two-fold increase in revenue for Byju’s in FY20, it’s pretty much achievable as the firm had managed to grow its operating revenues almost threefold from Rs 471.2 crore in FY18 to Rs 1,306 crore in FY19.
According to the company, it has amassed 50 million users on the platform of which 3.5 million are paid customers till date.
The firm has also registered a 43% jump to 100 minutes in terms of time spent by a user on the platform on a daily basis. The firm attributed the growth to allowing free access to users as soon as the lockdown was announced throughout the country.
For the uninitiated, Byju’s primary revenue is generated from the sale of tablets, which allow streaming educational courses and sale of supporting study material.
Meanwhile, the company is reportedly in talks to raise $400 million in the ongoing round at a staggering valuation of $10 billion. If the deal goes through, it would become the third firm to enter the decacorn club after Paytm and Oyo.