BYJU’S Overhauls Strategy to Achieve Profitability by March 2024

The Indian edtech giant, BYJU’S, is undergoing significant changes and restructuring aimed at achieving profitability by March 2024. This ambitious goal comes as the company grapples with a series of financial challenges, including a $1.2 billion term loan B (TLB) and a liquidity crisis.

As part of its restructuring efforts, BYJU’S plans to lay off approximately 4,000 employees in the coming weeks. These layoffs are part of the company's strategy to streamline its operations and align resources with cash flows, a move driven by the pressing need to address its financial woes.

Initially, BYJU’S had set a goal to achieve profitability by March 2023, but various setbacks, including the departure of key investors from its board and the loss of its auditor, Deloitte, due to deferred financial statements, have pushed this target further out of reach.

One of the primary challenges facing BYJU’S is settling its $1.2 billion TLB. The company recently offered to repay the entire loan within six months, and it plans to raise funds by selling two subsidiaries, EPIC and Great Learning. The sale of EPIC is expected to contribute significantly to meeting the loan repayment requirements, but the response from TLB lenders is still pending.