byju loss: Byju becomes the startup with the biggest loss, figure reaches Rs 8245 crore

Byju loss: Byju becomes the startup with the biggest loss, figure reaches Rs 8245 crore

Sinking startup: Byju's, which was once called the most valuable startup of the country, is now finding itself surrounded by troubles.  The losses of the edtech company are increasing rapidly.  Byju has suffered a loss of Rs 8245 crore in the financial year 2022.

At present, it has not only become the biggest loss making startup but has also become one of the most loss making companies in the country.

 Vodafone Idea and Tata Motors suffered bigger losses than this.

 According to Bloomberg report, telecom operator Vodafone Idea had recorded the highest loss of Rs 28245 crore in the financial year 2022.  After this was Tata Motors.  The net loss of the country's second largest car manufacturing company was Rs 11441 crore.  Tata Motors recovered by registering a profit of Rs 2414 crore in the financial year 2023.  But, Vodafone Idea got further stuck in the quagmire of losses in the financial year 2023.  Company loss increased by Rs 1056 crore during this period.

 These companies suffered the highest losses in the financial year 2022

 Vodafone Idea – Rs 28245 crore

 Tata Motors – Rs 11441 crore

 Byju's - Rs 8245 crore

 Reliance Capital – Rs 8116 crore

 Reliance Communications – Rs 6620 crore

 

Attributed to WhiteHat Jr. and Osmo

Byju's on Tuesday disclosed its financial position for the financial year after a delay of 22 months.  According to the report, the company's revenue doubled to Rs 5298 crore in the last financial year.  In the previous financial year, the company's revenue was Rs 2428 crore.  But the losses also almost doubled.  Whitehat Junior and Osmo have been held responsible for this record loss.

 Contribution of new business to total loss Rs 3800 crore

 According to Byju, the contribution of new business in the total loss was 45 percent or Rs 3800 crore.  The financial cost also increased to Rs 519 crore in FY 2022.  A year ago this figure was Rs 62 crore.  Apart from losses, the company is also facing some lawsuits regarding a $1.2 billion term loan taken by Byju's Alpha Inc.  It is a step down subsidiary, whose guarantor is Byju.

Clouds of concern are looming over the future of the company

 The auditor wrote in his report that due to these circumstances, clouds of concern are looming over the future of the company.  Its operational prospects are also in a worrying state.  The deteriorating financial condition has also had a negative impact on the market value of the company.  According to statistics, at present the market value of Byju's has remained at 1 billion dollars.  This figure was approximately $22 billion in April 2023.