INSUBCONTINENT EXCLUSIVE:
start-up world is facing a funding freeze
The educational technology (edtech) giant targets profitability by March next year
Authority (QIA) and existing investors
The valuation of the firm had remained static at $22 billion
Raveendran was in talks with various international and domestic banks to raise $400 million as a loan to fund 50 per cent of the
$800-million funding round, according to people familiar with the development.
The Bengaluru-based firm recently announced plans to lay
crore for 2020-21 (FY21), 19 times more than the preceding year, according to its latest financial report
The firm earned Rs 2,428 crore in revenues in FY21
Its adjusted revenue in FY20 was Rs 2,511 crore, with the adjusted loss standing at Rs 300 crore.
Raveendran had earlier said that the
firm was in a sweet spot in terms of its growth story where unit economics and the economies of scale were both in its favour
This meant the capital that the company would invest in its business would result in profitable growth and create sustainable social impact,
The firm has now embarked on the path to achieving group-level profitability by March next year with a three-pronged approach.
It is
Other acquisitions Aakash and Great Learning would function separately
The company is also realigning marketing spending to enhance its global footprint.
The firm also plans to hire 10,000 teachers in the next
six months, adding to the current strength of 20,000 teachers
The company is also expanding its teams, besides hiring senior leadership, to further build operational strength.
The firm said that it
has already started shifting its focus toward profitable growth
