Unicorn enterprise continuous "thunder" India's valid market is far less than expected

Xinhua Finance Mumbai, September 24 (Reporter Zhang Yadong) After many postponed extensions, Byju's, a unicorn company in the field of Education and Technology in India, announced the 2021 annual report that surprised the market. expand. In fact, in India, it is not only an educational technology startup, including mobile payment companies, catering technology startups, etc., all of which have problems such as high market valuation and difficulty in profitability. Enterprises invest in India's market size, but the real problem is that the effective market in India is far less large as expected.

Byju's performance "Thunder"

After many extensions, India's Education Technology startup Byju's recently announced the annual report of fiscal 2021: In the fiscal year as of March 2021, Byju's annual revenue was 22.8 billion rupees with a loss of 45.8 billion rupees. The annual revenue of Byju's 20121 fiscal revenue fell 3%compared with the previous fiscal year, while losses sharply expanded from 2.3 billion rupees in the previous fiscal year to 4.5.8 billion rupees, and the losses were nearly 20 times.

Byju's Bandar, known as Indian Silicon Valley, is the head enterprise in the field of Indian education technology. It has received investment in international investors including Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Sofina, Tiger Global.

The expansion of Byju's 20121 fiscal year mainly expands the company's total expenditure. The company's total expenditure in fiscal 2021 was 70.2 billion rupees, while the previous fiscal year's total expenditure was only 28.7 billion rupees. Byju's pointed out that the significant growth of the company's expenditure is the increase in "business promotion costs", from 9 billion rupees in the last fiscal year to 22.5 billion rupees in fiscal year.

Byju's is lower than the reasons for market expectations to change the company's expected business model. "Compared with the fiscal year of 2020, the company's business growth is very significant, but due to changes in business models related to the new crown virus, nearly 40%of their income will be postponed to the next few years." The company is in a one Represents in the statement.

The market was disappointed and angry about Byju's annual report. Has Cook, chairman of Indian Entertainment RPG, pointed out on Twitter that Byju's revenue is 22.8 billion rupees and Byju's losses are 45.8 billion rupees. "This means you 1 rupee, I will return 2 rupees. The valuation of up to $ 22 billion, ranked first among startups, is the hottest investment area -education technology, but these do not make any sense to me! "

An investor named Arand Vassot said that investment startups bet in Mumbai's racetrack. "If you win, you can be called a visionary person, otherwise it is 99.9%of the losers."

After the listing of multiple unicorn companies in India, the stock price fell sharply after listing

Byju's has planned to go public, but the listing time has been pushing back. Now it is planned to strive for listing in the next six months. Byju's claims that it currently operates more than 200 offline tuition centers and plans to expand this number to 500 by the end of this year, and more than 150 million learners from more than 120 countries are using their products and services. This will be the biggest selling point for its listing.

Byju's has not yet been listed, and the performance bulletin has exploded, and investors can observe it carefully. Last year, those companies investing in mobile payment and catering technology unicorn may not be so lucky: After some well -known unicorns listed, the stock price fell sharply and investors were trapped in it.

Paytm, a head -of -headed company in India, is a typical example of this. On November 18, 2021, Paytm was listed on the Stock Exchange of Mumbai, with a listing price of 1,850 rupees per share. However, as of September 19, 2022, Paytm's stock price had fallen to 706 rupees per share, a decrease of more than 60%from its issue price.

Zomato, another dining unicorn listed company in India, is similar. In July 2021, Zomato's IPO price was 72 rupees per share. In the secondary market after listing, its stock price soon reached 169 rupees per share, but as of September 19, the price of the stock had fallen to each share 64 rupees have fallen below the issue price.

Whether it is Byju's, or Paytm and Zomato, the commonality is the Internet transformation of traditional enterprises. Since it is a traditional enterprise, the market is visible, but this does not mean that these companies can easily achieve profitability.

Paytm founder Vijay Shekhar Sharma pointed out that Paytm cannot be viewed with a momentary performance. Paytm is a brand new business model, and people need time to accept. But in fact, Paytm's application scenarios are very limited. Indians, especially some older residents, are still used to cash payment. At the same time, Indian merchants themselves are not very enthusiastic about Paytm. "Some young people come to my store when they buy flowers when they come to buy flowers. I can pay with Paytm. In the past 10 years, we have all cash transactions. I don't understand the principle of Paytm payment." Said the owner of Nan Meng bought a flower shop. The same is true of byju's. The outbreak of the Indian epidemic in 2020, the school was closed, and online learning began to show explosive growth. But this situation is unsustainable. Later, many students in India returned to the traditional face training mode again. "India's real rich children are more keen on off -school counseling. Those ordinary cities are actually unwilling or unable to afford additional off -campus training fees. India's effective market is not as large as expected." One Professional analysts of the Economic Analysis Company said.

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