There will be very few people who are unaware of the name BYJU’S, People had applied for loans to take a course in BYJU’S, some even went into financial crisis by taking a course in BYJU’S. If we talk about the employees, they can write a book about the harassment and toxic culture in BYJU’S.         Let’s see some Milestones in BYJU’S Journey.

RISE OF BYJU’S:

Started as a CAT Coaching for friends and then expanded as a Coaching Center for CAT aspirants. Raveendran has a deep understanding of subject and was very expressive which made him as a very good teacher. Raveendran has realized his ability and decided to pursue teaching as his career.

In 2006, Raveendran started CAT Coaching classes, students gradually increased from 3 digits to 4 digits, from Classroom to Auditoriums, Raveendran adopted a different strategy, first class will be free and if you want to continue then need to take the course. Raveendran has expanded to almost 9cities within a span of 3 years.

In 2009, Raveendran has introduced Video Classes and started UPSC Courses. Raveendran has a very different plans to expand the Company.

In 2011, Think and Learn has been incorporated, the parent Company of BYJU’S. BYJU’S Slowly entered into School Segment and approached many schools for Video Classes. It opened its first Offline Center in Bangalore and Started Video Classes.

RISE & RISE OF BYJU’S:

In 2012, Raveendran had met Ranjan Pai of Manipal Group, Fascinated by the Concept and future plans, Pai has insteadly invested 50Crores in the BYJU’S. From them, Funds started to flow from all the Directions. Byju’s Started becoming big and trusted name in Edtech Industry.

In 2018, BYJU’S Became worlds most Valued Edtech Startup crossing 1B$ in Valuation.

Exponential Growth of BYJU’S:

COVID-19 was a nightmare for millions of people but was a big opportunity for Edtech Companies. Schools were Closed and it opened the doors for Online Edtech Companies. BYJU’S raised almost 3.3B$ during the pandemic reaching its valuation to 22B$ at its peak Period.

BYJU’S Started to acquire the Edtech Companies like Whitehat JR, Offline tuition Academy Akash, Great Learning etc. It has acquired the Companies not only in INDIA, but also in US. BYJU’S was sitting on bunch of cash from investors, it has acquired the companies in huge Premiums. It was getting Loans at Cheaper rates at that time, it took all the opportunity to become a 100B$ Entity.

FALL OF A GAINT:

By the End of Year 2022, Covid has ended Slowly, Schools started to re-open and problems have started for BYJU’S. 

• Investors were expecting the same exponential growth for the Company even after the Covid-19, which was totally Sidelined.
• Byju’s numbers were declining slowly after Covid-19, it was Continuously failing to meet the expectations of Investors.
• By May 2023, BYJU’S valuation was falling Drastically.
• US FED has Started to increase the Interest Rate to Control Inflation, Investors started to Invest in BONDS as a Safe Assest rather then investing in Risky Equity, which in turn dried up the Funding for Startups and Edtech Companies.
• As Interest rates Fired up, BYJU’S was unable to raise new funds.
• Acquiring the Companies with much high Premiums, which later tuned to be a Disastrous for the Company.
• Fooling people and Making False promises to the Customers by the Salespersons, wrong commitments have totally damaged the Trust ability of the Company.
• Huge Marketing and Advertising Expenses, for 2021-22 the revenue was 2400 Crores while the Advertising Expenses was 2500Crores. This statement explains the inability of Managment to Control resources and Risk Ability.
• Recently, BCCI has dragged the Company in NCLT for Bankruptcy over pending dues over Sponsorship.

BYJU’S HAS BROKEN THE TRUST OF ALL THE PARENTS WHO ENROLLED IN BYJU’S COURSES AND MAKE HUGE LOSSES FOR THE INVESTORS WHO TRUSTED THE MANAGEMENT. STAFF WERE TORTURED IN ALL THE WAY TO FULFILL THEIR TARGETS AND LATER THEY PAYMENTS WERE UPHOLDED WHICH WERE NOT PAID TILL TODAY.

CONCLUSION:

At Peak Valuation, Byju’s was sitting at a large bunch of Cash which was coming from all the directions. Byju’s Management has taken wrong decision in utilizing the funds, they acquired the Companies with no future plan on them. Byju’s has spent millions of dollars in Advertising and brand endorsement which would rather be spent in building their fundamentals.

Undoubtedly, BYJU’S has initiated the Digital Transformation in the Country.

Hope, this will be a Case study for Many Startups for utilizing their funds and managing their risk properly.