Great Learning, an online professional education platform owned by edtech giant BYJU’S, saw its net loss swell 1.2 times to INR 357.3 crore in the financial year 2023 (FY23) compared to INR 292.5 crore in FY22.
Financial Highlights
Great Learning’s operating revenue increased by 44% to INR 287.5 crore in FY23 from INR 199.5 crore in FY22. However, its costs climbed by 41% in FY23, to INR 644.8 crore from INR 460.9 crore in FY22.
The company’s growing loss may be ascribed to rising marketing and advertising costs, which increased by 63% in FY23 to INR 452.1 crore from INR 278.6 crore in FY22. Great Learning also had increased personnel expenditures in FY23, totaling INR 141.7 crore, compared to INR 96.5 crore in FY22.
What is the Impact of BYJU’S Acquisition?
Great Learning’s financial record comes at a time when the edtech industry is experiencing a financing slowdown and a wave of consolidation. BYJU’S, which purchased Great Learning in 2021, has been under pressure to improve its financial performance and cut losses.
Great Learning is a significant development engine for BYJU, and the business hopes to make the online professional education platform profitable in the coming years.
Industry Challenges
In recent months, the edtech industry has faced a number of obstacles, including a decrease in investment, greater rivalry, and regulatory scrutiny. Due to these issues, some edtech businesses have been forced to stop or scale their operations.
Despite these obstacles, BYJU’S is optimistic about the edtech industry’s long-term potential. The business anticipates that demand for online education will continue to rise in the future years, owing to factors such as increased internet penetration and a growing desire for upskilling and reskilling.
BYJU’S’s Strategy
BYJU’S, a renowned edtech business in India, has been under pressure to improve its financial performance and cut losses. To overcome these difficulties, the business has established three critical strategies:
- Operational Consolidation: In recent months, BYJU’S has been consolidating its operations by closing or combining some of its subsidiaries. This combination is projected to result in cost savings and increased overall profitability for the organization.
- Profitability Focus: In recent quarters, BYJU’S has moved its focus from expansion to profitability. The corporation is taking measures to minimise its marketing and advertising expenditures, which have historically been a primary source of its losses.
- Expansion into New Markets: BYJU’S is growing into new markets, both locally and globally. The firm is focusing on markets with a strong demand for online education and has launched various new efforts to attract new consumers.
- Raising New Capital: BYJU’S is looking at new methods to fund its expansion objectives. The firm has been in negotiations with possible investors and is exploring an initial public offering (IPO).
- Investing in Technology Infrastructure: BYJU’S is substantially investing in technology infrastructure to support its expansion objectives. The corporation is updating its data centres and creating new artificial intelligence (AI) and machine learning (ML) capabilities.
- Product Portfolio Diversification: BYJU’S is expanding its product portfolio by offering a broader selection of courses and learning solutions. In addition, the organization is focusing on new consumer categories such as corporate learners and professionals.
- Strong Partnerships: BYJU’s is forming strong alliances with universities, schools, and other educational institutions. These collaborations will allow the organization to reach a larger audience and extend its course offerings.
- Improving User Experience: BYJU’S is dedicated to offering a positive user experience. The firm is investing in new features and increasing the platform’s general usefulness.
BYJU’s approach is centered on tackling the industry’s issues and capitalizing on the rising demand for online education. The company’s capacity to effectively execute its plan will be determined by its ability to control expenses, grow its reach, and produce innovative goods and services.
Conclusion
The growing loss of Great Learning is reason for alarm, but BYJU’s remains optimistic about the online professional education platform’s long-term prospects. The corporation is working to improve its financial performance and cut losses, and it is also looking for new methods to obtain funds. The success of BYJU’s plan will be determined by its ability to negotiate the edtech industry’s hurdles and capitalise on the rising demand for online education.
In addition to the foregoing, here are some more elements to consider including in your article:
- Great Learning is a renowned online professional education platform in India.
- The organisation provides a diverse selection of courses in areas such as business, technology, and design.
- Great Learning has a significant presence in India and has collaborated with a number of prestigious colleges and institutes.
- The firm is suffering difficulties as a result of the edtech industry’s slump.
- BYJU’S intends to make Great Learning profitable in the future years.
