After a fiscal of losses, Byju’s-owned Gradeup reports ₹15.2 crore profit in FY23

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Edtech major Byju’s-owned Gradeup, exam preparation start-up, reported a net profit of ₹15.2 crore in the financial year 2022-23 (FY23) against a net loss of ₹133 crore in the previous fiscal year.

The edtech start-up’s operating revenue was ₹154.1 crore in FY23, up from ₹49.1 crore in the previous fiscal, while the overall expenses reported during the year fell from ₹182.5 crore in FY22 to ₹139 crore in FY23.

The company generated revenue of ₹34.7 crore from education and related activities. At ₹119.3 crore, a majority of the edtech start-up’s revenue came from ‘business support services’ provided to Think & Learn Pvt Ltd, the parent of Byju’s. Revenue under this bucket was nil in FY22.

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The start-up’s employee benefit rose to ₹89.4 crore compared with to ₹75.4 crore in FY22. The other big cost for the start-up was advertising expenses, however, it declined to ₹19 crore from ₹53.2 crore in FY22.

In 2021, Byju’s acquired the edtech company and spent over $2 billion. As per reports, Byju’s had spent $40 million to $50 million for the acquisition of Gradeup from Times Internet. Post the acquisition of Gradeup, Byju’s rebranded it to Byju’s Exam Prep.

Edtech major Byju’s has filed its much delayed audited financial accounting for the year ended March 2022. It has reported 2.3 times growth in revenue to ₹3,569 crore from ₹1,552 crore in the previous year. The results are that of Byju’s core business operations and do not include its acquisitions.

Earnings before interest, taxes, depreciation, and amortisation-based loss of the core business was down from ₹2,406 crore to ₹2,253 crore in FY22, as per a statement from the company.

The margin had improved -63 per cent in FY22 from -155 per cent in FY21, the statement added.

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