INDIAN EDUCATIONAL TECH STARTUP BYJU’S TURNS PROFITABLE WITH ABOUT 3 TIMES REVENUE GROWTH
An Indian edtech startup Byju’s turns profitable after the startup posted a net profit of $2.8 million on revenue of $188.8 million in the financial year that ended in March 2019, and plans to double its revenue. Though, Byju’s is regarded as one of India’s biggest tech startup.
Speaking of the company’s future plans and development, it was figured out that the company witnessed an increase in revenue, from $73.2 million to $208 million compared with that of the previous year. The startup that is valued at $5.75 billion based on its previous financing round that took place earlier this year has its headquarter in Bangalore, however, was founded eight years ago.
Byju’s profit declaration was posted on Tuesday and aim to double its revenue to $422 million precisely by March 2020. In the same vein, it’s understood most unicorns are still facing the same issue of cash burn without profits, however, edtech startup unicorn Byju’s announcement is viewed as its return to profit in the 2019 financial year.
Prior to this development (Byju’s turns profitable), the edtech startup claims it has reached over forty (40) million registered users coupled with 2.8 million paid subscribers. Also, the average time a student spends on the platform has increased tremendously, from sixty minutes to seventy-one minutes per day in the past year with annual renewal rates as high as 85 percent.
Byju’s COO ‘Mrinal Mohit’ in a press release made it clear that the company will be launching a new product in a bid to achieve its 2020 target. Based on this, Mohit said: “With 60% of our students based outside the metros, the aspiration and need for quality learning has never been higher. In the current financial year, we are on track to double our revenue to $300. We will also be launching BYJU’S Online Tutoring which will further accelerate growth and profitability in the coming year”.
In a bid to deepen byju’s strategy, Mohit said in addition: “We are also planning to reach out to deeper parts of India by launching programs in vernacular language”.
Over the years Byju’s fundraising has been focused on international expansion, which saw the company expand to the United Kingdom, the U.S., the Middle East, South Africa, and other African markets coupled with Commonwealth countries. Also, the company’s move in January 2019, gave rise to the acquisition of U.S.-based platform, Osmo.
As Byju’s turns profitable, the company plans to launch Byju’s Online Tutoring that will help enhance the company’s growth and profit. To deepen its sales, the company now partner with Disney to launch edtech services for kids in classes one to three.
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