In order to cover costs and turn a profit in FY23, BYJU'S will not be renewing its branding agreements with the BCCI (Board of Control for Cricket in India), ICC (International Cricket Council), and FIFA, the company's founder and CEO, Byju Raveendran, announced at the World Economic Forum (WEF), Davos.
The largest optimization that one will notice over the coming months is that they will drastically reduce their branding efforts because they believe they have attained the level of brand recognition needed for both the category and the firm. So, as one can see, they are terminating some of those branding agreements,Raveendran said to Moneycontrol.
The company made news in September of last year when, after almost an 18-month delay, it released its financial statements and discovered that its losses had increased to Rs 4,588 crore while its revenues were at Rs 2,428 crore.
He claims that they won't continue with some of the collaborations. They have numerous agreements with the BCCI, ICC, and FIFA, and by eliminating these branding activities by refusing to renew them, they hope to see a significant improvement in that area.
The year 2022 was challenging for the edtech major. In October, the corporation announced the 5% layoff of its personnel following the release of its financial results. After mass layoffs to concentrate on capital-efficient growth, the Bengaluru-based company appeared to be entering a phase of relative calm when the National Commission for Protection of Child Rights (NCPCR) pulled the company aside over alleged hard-selling and mis-selling of its courses to students.
When the corporation named Lionel Messi the brand ambassador of its not-for-profit endeavour, it also received a great deal of criticism.
The WhiteHatJr acquisition was the most difficult of the six BYJU'S made, according to the founder of the edtech unicorn.
BYJU'S purchased WhiteHatJr in 2020 for $300 million. When this offer was made, according to Raveendran, it looked reasonable because the company was receiving proposals worth more than $300 million. Additionally, he added, the company, run by Karan Bajaj, was developing reasonably at the time. He claimed that in addition to WhiteHatJr, other purchases had also been successful, such as the one of Aakash Institutes. He noted the threefold growth of Aakash and the twofold growth of Great Learning, another business that BYJU'S bought.