Byju’s to become profitable from next year, plans to launch international products soon

BENGALURU: Edtech company Byju’s is on its way to a full-year profitability in FY18, according to CEO Byju Raveendran. The firm is also working on launching its international products by the end of next year.

According to the documents filed with the Registrar of Companies and accessed from research platform Tofler, the total income of Byju’s has more than doubled in FY17 as compared to FY16. In FY 16, the income was Rs 110 crore and it reached Rs 247 crore in FY 17. “From finishing at Rs 250 crore in revenue in March 2017, the company is on target to cross Rs 550 crore in March 2018, also turning profitable at the same time,” said Raveendran.

The net losses have marginally increased from Rs 49. 6 crore to Rs 59.4 crore as compared to the previous financial year, where it went up by 43%. A significant investment has gone into employee costs and advertising. “In first six months itself, we have crossed last year’s revenue and loss. As a percentage, it has dropped substantially. We have doubled teams in product development,” said Raveendran.

Total employee benefit expenses have increased from Rs 25.5 crore to Rs 62.5 crore. On the international expansion front, Byju’s will first look to target the US and the UK. “We will launch our products initially in the US, UK and few other smaller English-speaking markets. We will launch them towards the end of 2018,” he said.

Bengaluru-based Byju’s, founded in 2011, caters to the K-12 and test prep audience.

The company is already present in the Middle East and is looking to expand to the US, the UK, South Africa and other African and Commonwealth markets. The edtech startup, which has raised a shade under $245 million counts Sofina, Lightspeed Ventures, Verlinvest, Aarin Capital and Times Internet and others as investors. Times Internet is part of the Times Group that publishes The Economic Times.

The app has around seven lakh annual subscribers, according to the company.