Byju's Set to Release FY22 Results This Week, Ending 19-Month Delay

Byju's, a prominent Indian startup, will finally release its FY22 results this week after a significant delay of more than 19 months. This announcement comes as a welcome development, as the audit of all group subsidiaries has been completed and adopted. Byju's parent company, Think and Learn Pvt Ltd, is set to consolidate the results, taking into account positive developments within the company.

Previously, Byju's management had agreed with its investors to publish the FY22 results by the end of September and the FY23 results by the end of December. However, due to various factors, including the absence of a full-time Chief Financial Officer for nearly two years, the release of financial results faced substantial delays. The appointment of Ajay Goel as CFO in April marked a step towards resolving these issues.

In June, Byju's long-standing auditor, Deloitte, resigned due to concerns regarding the company's revenue recognition methods for its FY21 accounts and the delay in producing FY22 results. The company then brought BDO on board as its new auditor.

The FY22 results hold great significance, despite the time lag they represent, as they capture a crucial period for Byju's. During this period, Byju's made significant acquisitions in both the Indian and international markets and secured over $3 billion in equity and debt financing. Byju's concluded FY22 on a positive note by raising substantial funding, reaching a valuation of $22 billion, making it the most valuable startup in India at the time. However, the company has since faced a series of controversies, including issues with financial reporting, alleged misselling, employee layoffs, and management resignations.

Byju's also encountered challenges on the international front, particularly concerning a $1.2 billion term loan B with international creditors. These creditors accelerated the loan repayment schedule due to technical defaults on the loan. Byju's proposed a repayment plan and the sale of key assets, including Great Learning and Epic, to address the debt situation.

Lenders have appointed Kroll to safeguard Great Learning's assets in the event of a management buyout. Byju's is also in discussions with Davidson Kempner, an investment firm, to address the default on the loan tied to Aakash Educational Services. Ranjan Pai, one of Byju's early investors, is considering an investment to repay Davidson Kempner, potentially injecting around $250-300 million into Aakash.

The challenges and financial issues have attracted the scrutiny of various government bodies, including India's financial probe agency and the Employees Provident Fund Organisation, adding to Byju's complex situation.