Think and Learn presents edtech Byju’s 3.0 proposal to investors at AGM

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Think and Learn, the parent company of Byju’s, passed all the resolutions, including the accounts for the financial year 2022, during its edtech giant’s Annual General Meeting (AGM). The meeting, attended by close to 60 shareholders, was held on Wednesday night.


“All the resolutions were passed, including the accounts for the financial year 2022,” the company stated.


The AGM had two agenda items: considering and approving the standalone and consolidated financials for the financial year 2022, and approving the appointment of MSKA and Associates (BDO in India) as its auditors. Byju’s announced that accounting firm BDO was re-appointed as the statutory auditors of the company.


“India Chief Executive Officer Arjun Mohan presented the Byju’s 3.0 plan to the investors and shareholders,” a person who attended the meeting revealed. “This includes a significant focus on the hybrid model, offering both online and offline educational services.”


Mohan discussed the company’s plan to enhance productivity, incorporating the latest developments in technology. The strategy centres on better monetising existing assets and expanding options across various price points and product ranges for potential Byju’s customers. The firm is also emphasising Byju’s Tuition Centres (BTCs) to generate cash profitably and advance hybrid education.

Founder Byju Raveendran commenced the AGM with an overview of the business’s current state and its challenges. This includes the issue of litigation surrounding Term Loan B (TLB), arising from a delayed audit and demands for a full refund from TLB lenders. Byju’s is negotiating with these lenders, and the challenge is expected to be resolved following the sale of Epic, a subsidiary in the US.

This sale will also assist in addressing the liquidity crisis the company is currently facing. Byju’s is embroiled in a dispute with lenders in the US over a missed interest payment on a $1.2 billion TLB. The company plans to sell two key assets — Epic and Great Learning — aiming to raise between $800 million and $1 billion to tackle its financial challenges, as per sources.


Another issue was the litigation regarding the Davidson Kempner (DK) loan against Aakash Educational Services Limited (AESL). This has been settled, with Manipal Education and Medical Group Chairman Ranjan Pai taking over the loan. Pai has invested $168 million (Rs 1,400 crore) in Byju’s test-prep subsidiary AESL and is in discussions to invest about $350 million in Byju’s in both equity and debt.


Nitin Golani, Chief Financial Officer- India, Byju’s, briefed on the audit. Parent Think & Learn Private Limited reportedly posted a consolidated revenue from operations of Rs 5,015 crore in the financial year 2022, according to numbers shared with NDTV Profit by those familiar with the matter.

While revenue increased from the financial year 2021’s Rs 2,280.2 crore, it fell short of the company’s projected Rs 10,000 crore. Its loss expanded to Rs 8,245 crore from Rs 4,564 crore, as reported by NDTV Profit. The company has not commented on these figures.


“The auditor BDO later addressed all questions from shareholders before the company concluded the interactive three-hour-long meeting,” Byju’s reported.


Industry insiders and analysts suggest that Byju’s is facing the challenge of significantly reducing its losses to establish a sustainable business model for the long term. The company recently disclosed financials for the financial year 2022, representing only its core operations, after nearly a year’s delay.

Think and Learn Private Limited (TLPL), Byju’s parent company, reported a 2.3-fold increase in its core business, achieving a total income of Rs 3,569 crore for 2021-22, up from Rs 1,552 crore in the prior year.

The Ebitda loss of the core business decreased from Rs 2,406 crore to Rs 2,253 crore, with a margin improvement from -155 per cent to -63 per cent, from the financial year 2021 to 2022. The company’s financials are based on an “unqualified financial year 2022 audit,” indicating the auditor’s approval of its financial reporting.


Previously, the company aimed to become profitable by March 2023. However, it reported losses of Rs 4,588 crore for the financial year 2021, 19 times greater than the previous year. WhiteHat Junior, a coding startup acquired by Byju’s in 2020 for approximately $300 million, was said to have contributed 26.73 per cent to the total loss.


Byju’s has delayed submitting its financial year 2022 results to the Ministry of Corporate Affairs, lagging behind other edtech unicorns like Unacademy, upGrad, and Vedantu. This delay has raised concerns among investors and lenders who have extended a $1.2 billion term loan B to the company.


Netherlands-based tech investor Prosus NV has marked down Byju’s valuation to under $3 billion, an 86 per cent decrease from its peak valuation of $22 billion last year. The Enforcement Directorate (ED) also recently issued a show cause notice of Rs 9,362 crore to Think & Learn, and its founder Byju Raveendran for alleged violations of foreign exchange rules in attracting foreign investments from 2011 to 2023.

First Published: Dec 20 2023 | 11:46 PM IST