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Byju plans to end jersey sponsorship of Indian cricket team as profitability on the cards for 2024

by SuperiorInvest

Indian education technology startup Byju’s will not renew its jersey sponsorship deal with the Indian cricket team, company co-founder Divya Gokulnath told CNBC.

In a wide-ranging interview, Gokulnath talked about the path to profitability and the potential for an initial public offering for Byju’s, one of India’s most valuable private technology firms.

Based in Bangalore, Byju’s provides online courses to students in various subjects. It has 150 million students worldwide, of which 25% are outside India.

Star Indian batsman Virat Kohli in the picture. Indian education start-up Byju’s has its logo prominently displayed on the jerseys of the Indian cricket team.

Munir Uz Zaman | AFP | Getty Images

The company’s losses rose sharply in the financial year ending March 2021, its latest public figures showed. Gokulnath attributes this to a change in revenue reporting. Instead of being charged when a person pays for a course, they are instead calculated when a particular course starts.

Gokulnath said the company has seen improvement over the past 12 months.

“We’re doing really well… the last 12 months have been really good for us in terms of the number of products we’ve added, in terms of the different formats we’ve launched and in terms of geography and subjects. into which we plunged,” said Gokulnath.

The co-founder added that the company will “hopefully” become profitable by the end of its financial year, which ends in March 2024.

This will include reducing branding and marketing costs. Byju’s was the official sponsor of the FIFA World Cup in Qatar last year. The company also has a sponsorship deal with the Board of Control for Cricket in India, the governing body for the sport in the country. Cricket is the biggest sport in India, a country of more than 1.4 billion people.

The Byju logo currently appears on the jersey of the Indian cricket team. But Gokulnath told CNBC Byju’s will not renew the deal after it expires in March.

IPO ahead

Byju’s is reportedly worth $22 billion. Gokulnath says the company wanted to go public last year, but market conditions turned sour.

Tech stocks around the world took a hit as the U.S. Federal Reserve and other central banks quickly raised interest rates to fight rampant inflation.

An IPO is still in the cards when the market improves, Gokulnath said.

“Even at the beginning of last year, we were thinking about several options to go public. But the thing is, we have the luxury of deciding when, where and how we want to do it,” Gokulnath said.

“We want to do it at a time where we don’t have to give up the potential that the company has. Because we have a lot of internal processes under our control, but not the external environment, and we want both to do really well.” before we go the IPO route.”

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