Byju's FY22 net loss is the third biggest for the year after Vodafone and Tata Motors

With burgeoning losses, Byju’s, once ranked among the most valuable startups in the country, is now finding itself at the bottom of the ladder. At a loss of ₹8,245 crores in FY22, the ed-tech company is not only the largest loss-making startup but also featured among the highest loss-making companies in India.

According to Bloomberg data, telecom operator Vodafone Idea had reported the highest loss of ₹28,245 crore in FY22, which was followed by Tata Motors, with a net loss of ₹11,441 crore. While Tata Motors returned to profit in FY23 by posting a bottom line of ₹2,414 crore, Vodafone Idea’s losses increased by ₹1,056 crore during the year.

After a delay of 22 months, Byju’s on Tuesday disclosed its financials for FY22. While the losses nearly doubled during the year, the revenue went up to ₹5,298 crore in FY22 from last year’s ₹2,428 crore. The management attributes the recent acquisitions — Whitehat Junior & Osmo — for the record losses in FY22.

According to them, the new business contributed 45% or Rs 3,800 crore to the total loss. Moreover, the finance cost also swelled to Rs 519 crore in FY22 against Rs 62 crore reported a year ago. What is more worrying is the auditors’ remark on the company’s ability to remain a going concern.

Apart from accumulated losses, the company also faces some ongoing litigations with respect to a $1.2 billion term loan availed by Byju’s Alpha Inc., a step-down subsidiary, where the parent firm is a guarantor.

"These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern," wrote the auditor in its report.

The deteriorating financial also took a knock on its sky-high valuations. According to data sourced from tracxn.com, the beleaguered education provider is currently valued at $1 billion, which is down from $22 billion seen in April 2023.