Byju's experienced profitability issues for several reasons: 1) They over-acquired ed-tech platforms to eliminate competition, which increased expenditures. 2) They recruited top talent, raising salary costs through "poaching". 3) They started offline classes after COVID lockdowns, acquiring more offline platforms to maintain growth. Their 2021 financial report showed a total loss of over $1 billion, with one acquisition (White Hat Jr.) contributing over a quarter of the losses. Heavy marketing spending exceeded revenue by only $30 million. To improve, Byju's could strengthen financial functions, improve company culture, control expenses like marketing, and divest unprofitable acquisitions.

1. BYJU’S CASE STUDY

2. REASONS FOR PROFITABILITY ISSUES ?
• Over acquiring ed-tech
platforms to kill competition.
• Recruiting best names thus
increasing expenditure in
salaries. This is usually
called poaching.
• Start of offline classes
after lockdown and
COVID pandemic got
eased out. Thus also
acquiring offline
platforms to maintain
growth or maturity
period.

3. REASONS FOR PROFITABILITY ISSUES ?
• With a total loss of INR
1,118.25 Cr in FY21, according
to BYJU’S unqualified
financial report, White Hat
Jr contributed 26.73% to the
total loss of INR 4,588 Cr
– (Inc42)
• Toxic sales
culture, in
order to
save job self
selling of
products
occurring. • Due to Heavy Marketing BYJU’s business promotion
expenses contributed almost 32% to its total expenses
during FY21. Compared to its consolidated revenue from
operation, business promotion expenses were less by
just INR 30 Cr.

4.  Strengthening the financial function of the company.
 Improving the work culture thus making the employees motivated for real sales.
 Benefitting in offline mode as with reach of Aakash Institute.
 Keeping expenditure in check especially in sphere of Marketing. Improving products in order to gain organic
marketing.
 Get rid off loss making White hat Jr.
 Raise through IPO and then channelizing the funds in an optimum way.
HOW TO OVERCOME THESE ?

5. THANK YOU !!!