BENGALURU: An $18-billion online learning company, Byju’s, which has become a global leader in the edtech space draws majority of its revenues from selling hardware devices including tablets and SD cards that are pre-loaded with the company’s curriculum.
The subscription based model of Byju’s is yet to take-off with tuition fees accounting for just 6% of total revenue, an analysis of the company’s financials filed with the Ministry of Corporate Affairs revealed.
The sale of educational tablets, SD cards and reference books to the platform users accounted for 93% of the total revenues of Byju’s at Rs 2,235 crore.
Byju’s has tied up with Hewlett Packard for supplying PCs, tablets and other devices.
The company’s losses for FY20 have ballooned by as much as 30x at Rs 262 crore for FY20 from Rs 8.82 crore a year ago, even as the its revenue and cash flows improved during the period.
“There was a significant increase in the revenue from operations during the current financial year also and the company has continued the growth in its operational and financial performance and has earned a profit of Rs 4,819.60 lakh after providing for comprehensive loss.Your directors are confident of achieving higher revenue and profits in the coming years in this global world as the opportunities are huge and your company is capable of exploring the same productively,” Bengaluru-based firm said in its RoC filings.
Revenues from operations increased by 82.3% to touch Rs 2,381 crore with earnings per share having grown by 90% at Rs 2,057 per share from Rs 192 in FY19.
This also indicates a huge jump in the company’s valuation, although the edtech firm hasn’t signaled any intentions to join the lineup of fellow new-age firms listing on bourses.
The company’s cash flow increased to Rs 126.63 crore in FY20 from Rs 76.3 crore a year ago. In terms of expenses, there was a 54% increase at Rs 3,022 crore with major allocations towards business marketing/promotions at Rs 1,175.6 crore followed by operational costs worth Rs 574 crore and employee wages at Rs 420 crore in FY20.