24, February, 2024
HomeTechnologyByju’s FY22 Results: Evaluating the Impact of Whitehat Jr and OSMO Subsidiaries on Edtech Firm's Performance

Byju’s FY22 Results: Evaluating the Impact of Whitehat Jr and OSMO Subsidiaries on Edtech Firm’s Performance

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Byju’s faced significant challenges in the financial year FY22, with its subsidiaries Whitehat Jr and OSMO emerging as the most underperforming assets, contributing to nearly 45 percent of the total losses incurred by the edtech giant.

Read Also | Byju’s Reports Impressive Growth in Standalone Revenue for FY22

After a prolonged wait, Byju’s finally released its FY22 results on January 23, revealing a total loss of Rs 8,245 crore. Notably, Rs 3,800 crore of these losses were attributed to the two subsidiaries.

Whitehat Jr, specializing in online coding classes for children, played a pivotal role in the downturn, reporting a loss (before tax) of Rs 2,877 crore—a substantial increase from the previous fiscal year’s Rs 1,549 crore.

The EBITDA loss reached Rs 2,358 crore, and the total income experienced a 0.9X decrease, dropping from Rs 326.67 crore to Rs 295.11 crore in FY22. Acquired in 2020 for $300 million, Whitehat Jr’s performance significantly impacted Byju’s overall financials.

Similarly, Tangible Play (OSMO), acquired in 2019 for $120 million, reported a 58 percent surge in losses (before tax) at Rs 946 crore. The total income declined by 7.8 percent, reaching Rs 553 crore in FY22. OSMO’s EBITDA loss stood at Rs 852 crore, marking a substantial 346 percent increase.

In contrast, Aakash Education Services and Great Learning proved to be successful acquisitions for Byju’s. Both entities witnessed income growth, with Aakash contributing Rs 1491 crore and Great Learning contributing Rs 628 crore in FY22.

Despite reports of Great Learning being put up for sale, discussions are still in the early stages, and Byju’s remains optimistic about the potential $400 million sale.

Excluding the setbacks faced by Whitehat Jr and OSMO, Byju’s reported a remarkable 3X growth in total income in FY22, amounting to Rs 4450 crore, demonstrating resilience and growth in other segments.

Overall, Byju’s consolidated revenue experienced a significant boost, jumping 118 percent from Rs 2,428 crore in FY21 to Rs 5,298 crore in FY22.

Read Also | BYJU’S Reports Significant Losses in FY22: Unveiling Financial Struggles and Remedial Measures

The contrasting performances of its subsidiaries underscore the complex landscape of the edtech industry, with certain acquisitions proving beneficial while others present challenges that need careful evaluation and strategic planning for the future.

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