Indian EdTech Giant Byju's Achieves Profitability Amid Rapid Growth
Byju's reports a net profit of $2.8 million on $188.8 million in revenue for the 2019 fiscal year, marking a significant shift from its previous losses. The education startup attributes this success to a surging subscriber base, particularly in smaller Indian cities.
Indian education technology startup Byju's achieves profitability, posting a net profit of $2.8 million on revenue of $188.8 million for the financial year that ends in March 2019. This marks a major turnaround for the Bangalore-headquartered company, which reports a net loss of $4 million on revenue of $69 million in the previous fiscal year. The eight-year-old startup, currently valued at $5.75 billion, sets a target to double its revenue to $422 million by March 2020.
The company experiences significant growth by expanding its paying subscriber base to 2.8 million users out of 40 million total registered users. A major driver of this expansion comes from outside India's major metropolitan areas, with 60% of paying customers now located in smaller cities and towns. To attract this demographic, Byju's adapts its app by tweaking English accents and accommodating various regional education systems.
Looking ahead, Byju's plans to accelerate its growth and profitability by launching new products like Byju's Online Tutoring and introducing programs in vernacular languages. The startup focuses on sustainable growth and expresses a strong ambition to build a global product that revolutionizes learning worldwide, with previous indications pointing to planned expansions into the U.S., U.K., Australian, and New Zealand markets.