Byju's founder Byju Raveendran said that the edtech giant will easily clock Rs 10,000 crore in revenue this year. "Let me under-promise and over-deliver. We will easily do Rs 10,000 crore revenue this year," said Raveendran. He also said that on that top line his profits would be 20-23 per cent or around Rs 2,000-2,300 crore after investing in all the new businesses.
In an interview with Business Today, Raveendran said that all the new businesses that the giant has acquired including Aakash, and Great Learning will only add to the revenues next year. "All these acquisitions will add to my revenues only next year, but in our core business, we had 17 per cent margins last year. It will remain the biggest part of our business over the next several years because there is no slow-down here and the mid-term impact of the pandemic is huge," stated Raveendran.
Byju's has made a strong entry into the test prep segment with Aakash, said Raveendran, further adding that they hope to scale it up at a 50-60 per cent CAGR in the next three-four years. "That's another billion-dollar revenue opportunity in three years," he said.
Great Learning with 400 million knowledge workers is also a huge opportunity, stated Raveendran. "Aakash has always been profitable, as has Byju's core model. We can make new acquisitions more efficient and have them grow faster. We plan to invest $150 million on marketing for this. These are inherently high-margin models," he said.
When asked about the profits on this Rs 10,000 crore top line, Raveendran said, "They should be between Rs 2,000-2,300 crore, a margin of 20-23 per cent, even after investing in all these new businesses."
Speaking about the rate at which the revenue line will grow in the next two-three years, Raveendran said that their core business growth will slow down to 75 per cent next year. However they will still grow at over 100 per cent over the next two-three years. "Byju's is moving very fast in the US and will hit a billion-dollar revenue there in this time frame," he reasoned.
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