Ed-tech company Byju’s posted ₹20 crore net profit on revenues of ₹1,341 crore for 2018-19 because of higher growth in paid subscription.

Its revenues for the previous year was ₹490 crore while gross revenues increased from ₹520 crore to ₹1,480 crore. Byju’s is on target to double its revenue to ₹3,000 crore in the current financial year, the company said in a statement on Tuesday.

Wider reach across India and significant growth in the number of paid subscribers have been the primary drivers of growth. In January, Byju’s forayed into the US with the acquisition of Osmo, the US-based learning platform.

Smaller towns

“We have exceeded our financial goals that we set at the beginning of the year. Expanding our base across smaller towns and cities and introducing new products have been pivotal to our growth. With 60 per cent of our students based outside the metros, the aspiration and for quality learning has never been higher,” Mrinal Mohit, Chief Operating Officer, Byju’s said. He said the ed-tech company will soon be launching online tutoring vertical to accelerate growth and profitability in the coming year.

Paid subscribers

Byju’s has over 40 million registered users and 2.8 million paid subscribers. The average number of minutes a student spends on the app has increased from 64 minutes to 71 minutes per day over the last 12 months and the annual renewal rates are at 85 per cent.

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