Thread by @rajeshkmoorthy

Byju's - A disaster waiting to happen.

#Byju's revenue fell 14% YoY to Rs 2,428 crore on a consolidated basis, down from Rs 2,704 crore the previous year, according to the FY21 results. Byju's reported a Rs 4,500 crore loss in FY21, nearly 17 times the Rs 262 crore loss in FY20.

According to Byju, due to a change in accounting practices, a significant increase in business was not reflected in the revenue figure, and nearly 40% of the revenue was deferred to subsequent years.

Even though Byju's is a privately held company, its financial results got more attention because Deloitte seemed to have taken a long time to sign off on them. Deloitte had some concerns about how Byju's was counting its income,

which made it take longer for the edtech giant to send its results to the MCA (Ministry of Corporate Affairs). Byju's had given the MCA at least four dates by which it needed to get its results to them, but it had missed all of them.

Due to the delay, the MCA also asked Byju's for an answer in the last week of August. On July 21, MP Karti Chidambaram wrote to the Serious Fraud Investigation Office (SFIO), a government agency that looks into corporate fraud, and asked for a financial investigation on Byju's.

By September 30 of the next fiscal year, private companies must turn in their annual financial reports to the MCA. Byju's has almost missed the official deadline for FY21 by almost a year, and the company has only about 15 days left to file results for FY22 (2021–2022).

Raveendran told that there were three things that caused the FY21 results to be late.
First, Raveendran said that the company couldn't travel because of COVID, which made it take longer to audit some of the companies it bought.

He also said that the delay in filing the results was due to the fact that the acquisitions were complicated and that Deloitte had asked for a change in how revenue was counted. Byju's has struggled since the beginning of this year.

In an effort to reduce costs, Byju's has let go of close to 2,500 employees. In addition, the company has not yet received $250 million from a few investment rounds it announced since September of last year.

Additionally, Byju's has delayed payments to Aakash Educational Services' shareholders, including private equity giant Blackstone, by two months. Furthermore, Byju's has been without a full-time Chief Financial Officer (CFO) for about a year.

PV Rao, the last CFO employed full-time, quit in 2021. Since then, the company has had an SVP- Finance, Byju's Group, in charge of its financial operations.

Byju's has also been considering an IPO, and reportedly, it was looking to list this year.

Byju's has also been in discussions with major US banks about an initial public offering (IPO) through the flotation of a special purpose acquisition company (SPAC). According to a person familiar with the discussions, the company is seeking a valuation of more than $45 billion.

So, in short, this company is a disaster waiting to happen. At this loss-making spree, investors feel that Byju's foray into sponsoring #FIFA is a waste of its funding.

DON'T EVEN CONSIDER INVESTING IN ITS IPO. EVER.

AM gonna short this stock once its listed in the market. 🙏