The Indian education technology start-up, Byju’s has decided to end the sponsorship agreement with BCCI for the jersey of the Indian cricket team. In June, Byju’s extended its jersey sponsorship agreement with the Board until November 2023, for an estimated revenue of USD $35 Million.
“We are doing really well … the last 12 months have been really good for us in terms of the number of products that we’ve added, in terms of the different formats that we’ve launched and in terms of the geography and the subjects that we’ve scaled into,” Byju’s co-founder Divya Gokulnath, told CNBC.
The co-founder also confirmed that the company will is hopeful of becoming a profitable venture at the end of its financial year, which concludes in March 2024. The company now wanted to look at long-term goals.
The company started making a huge number of losses in its financial year that ended in March 2021, its latest public figures showed. Gokulnath attributes this to a change in revenue recognition. Instead of revenue being accounted for when a person paid for a course, it is instead calculated when the specific course begins.
From the BCCI, a statement has emerged on the sponsorship deal stating that Byju’s now wants to terminate its agreement with the BCCI. However, the board had asked the company to continue at least until March 2023.
One of the BCCI official said, “BCCI received an email from Byju’s on November 4, 2022 requesting terminating the association post the recently concluded T20 World Cup. As per our discussions with Byju’s, we have asked them to continue the current arrangement and continue the partnership at least until March 31, 2023.”
Bangalore-based Byju’s delivers online classes to students in various subjects. It has 150 million students across the world, of whom 25% are from outside of India.