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Byju’s FY21 losses widen after change in revenue recognition | Mint – Mint

Edtech major Byju’s parent Think and Learn Pvt. Ltd’s net comprehensive loss widened to 4588.75 crore for the financial year ended 31 March 2021 from a comprehensive loss of 231.69 crore it incurred a year ago, the company results show.

Calling the blip a result of the change in financial reporting structure, Byju Raveendran, the co-founder and chief executive of the firm said in an interview with Mint on Wednesday morning that the subsequent year’s results will show a stronger financial growth and uptick in numbers.

“There was significant business growth in FY 21 over FY 20, but since this is the first year where new revenue recognition started because of a Covid-related business model change, almost 40% of the revenue was deferred to subsequent years,” he told Mint.

“The rationalized growth between FY 21 and FY 20 is a result of the changes made in the way the company recognizes its revenue, as advised by its auditors.”

It has readjusted its revenue from operations to 2,280 crore for FY21.

Mint had reported on 4 August that the company was expecting a downward revision of its FY21 revenue. 

The company’s accounts are audited by Deloitte Haskins & Sells, one of the big four tax consulting firms globally.

Byju’s, which was last valued at $22.6 billion based on an internal estimate, disclosed its audited and unqualified financial earnings report on Wednesday for the financial year ending March 31, 2021, after a delay of more than 18 months.

While the audit report is unqualified, there are two ‘emphasis on matters’ on the company’s revenue recognition and an adverse opinion on its ‘internal controls’.

The company has started the process of adding to its finance team and will be appointing a global chief executive shortly, Raveendran said.

The company has also adjusted its revenues and losses for FY20 and FY19.

As part of audit adjustments, the revenue for FY20 was reduced by 191.77 crore from the previously reported FY 20 revenue of 2380.76 crore.

Its net losses for FY20 widened by 43.37 crore.

The firm, which has been on an acquisition spree, reported 10,000 crore in gross revenues in FY22, Mint reported on 5 July.

Between April and July 2022, the company logged a revenue of 4530 crore, Raveendran said. Over the last 18 months, it has acquired companies such as Aakash Educational Services Ltd. (AESL), Great Learning, Epic, Tynker, Scholr, Toppr, Osmo and Gradup among others,

The company is in the process of raising a new funding round of more than $500 million and counts investors such as Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Tencent, Sequoia Capital, Sofina, Verlinvest, IFC, Aarin Capital, TimesInternet, Lightspeed Ventures, Tiger Global, Owl Ventures & Qatar Investment Authority on its captable.

Founded in 2011, by Byju Raveendran, Divya Gokulnath and Riju Raveendran, Byju’s is one of the biggest education companies in the country. Today, there are over 200 active centres across India and the company aims to scale it up to 500 centres by the end of this year, the company said.

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