Name: Thomson Chacko
Roll No.: SL24ULBB021
Class: A
1
Table of Contents
Chapter 1: Introduction.................................................................................2
1.2 Statement of Problem:.........................................................................3
1.3 Objective of Study:...............................................................................3
1.4 Reseach Questions:..............................................................................3
1.5 Hypothesis:..........................................................................................3
1.6 Research Methodology:........................................................................4
1.7 Research Plan:.....................................................................................4
Chapter2: The Rise of Byju’s......................................................................4
Chapter 3: Understanding the demise of Byju’s.........................................5
3.2Financial and Operational Struggles*....................................................6
3.3 Stakeholder Effect................................................................................6
3.4 Regulatory Scrutiny and Legal Challenges...........................................7
3.5 Market Competition and Changing Consumer Preferences..................7
3.6 Reputation Damage and Trust Issues..................................................8
3.7 Impact on Ed-Tech Industry.................................................................8
Chapter 4: Implications for the Ed-Tech Industry.......................................8
4.2 Sustainability of Growth Models...........................................................9
4.3 Customer-Centric Approach.................................................................9
4.4 Employee Well-being and Retention....................................................9
4.5 Diversification and Flexibility Byju's.....................................................9
4.6 Competition and Market Saturation.....................................................9
4.7 Impact on Investor Sentiment..............................................................9
Chapter 5: Conclusion..............................................................................10
Bibliography.............................................................................................10
2
From Success to Greediness: The Decline of Byju’s
Chapter 1: Introduction
Byju’s, once a leading company in the Ed-tech industry, has experienced a massive downfall
from glory. Known for its Ed-tech revolution in India, Byju's has taken a spectacular turn from
the company boasting its valuation at $22 billion dollars to a now mere $3 billion dollar value.
The question has to be asked: What went wrong? To understand Byju’s decline, we must first
recall its history and analyze Byju’s at its glory days.
Byju Raveendran was content being a service engineer for a shipping firm. He was in Kerala for
his vacation in 2003, where he helped a few friends crack the MBA entrance exam CAT. It was
there that he felt that he had an inclination towards teaching. He gave the competitive exam, and
much to the surprise of everyone, he topped the list with a full score. He turned down all the
MBA calls and rejoined the job. But after two years of work once again, he scored 100
percentiles in the exam. This made multiple people approach him to crack the exam. The demand
for teaching skills escalated very quickly, and so Byju's classes for the CAT exam were formally
launched in the year 2006.
Soon, Byju's expanded his horizon to extend his services to undergraduate students and
eventually in 2011 became the founder of Think and Learn Pvt Ltd. The company afterward
entered school curriculum breaking chapters into interactive videos and using real-life examples
for the student to understand the fundamental concepts. It was in 2015 that the company
introduced the Byju's learning app, which targeted students from kindergarten to class 12. In just
three years, Byju's became India's first ed-tech unicorn-the startup valued more than $1 billion-in
2019. The startup ecosystem had fallen in love with Byju's innovative way of teaching. It took
Byju's interactive videos and technology coupled with celebrity endorsement by Shah Rukh
Khan and Virat Kohli to unheard levels of valuation at an astonishing $22 billion, thereby setting
the world's most expensive ed-tech startup.
After the unexpected rise and success of Byju’s, the company suddenly faced a slow decline in
sales which resulted in its ultimate demise. 1 2
1
Garg, N., Garg, N., & Garg, N. (2023, January 24). BYJU’S Case Study: Marketing Strategies
& Campaigns. Waffle Bytes Blog. https://wafflebytes.com/blog/byjus-case-study-marketing-
strategies-campaigns/
3
1.2 Statement of Problem:
The root causes of all the problems Byju’s have been facing certainly raised questions about the
company’s business model and sustainability. excessive expansion strategies outweighing
financial stability, growing competition in the online education space, and changing consumer
preferences for more flexible, affordable options for learning. Besides this, regulatory
compliance and financial transparency have become the headache for the company that has
further resulted in a dent in investors' confidence. Hence, this situation demands a thorough
analysis of what went wrong with Byju and how lessons can be learned there to further
implement strategies in the edtech landscape for such similar companies.
1.3 Objective of Study:
1. Understand the rise of Byju’s as a Ed-Tech company.
2. Analyzing the underlying causes of Byju’s demise.
1.4 Reseach Questions:
1. What market factors, management, customer preferences and financial descisions contributed
to the decline of BYJU's in the edtech sector?
1.5 Hypothesis:
Increase in competition, poor management and financial decisions, operational inefficiencies,
leadership changes, damage to brand reputation contributed to the downfall of Byju’s.
2
Byju's To Lay Off 500 Employees Amid Financial Crunch: Report. (n.d.). NDTV.com.
https://www.ndtv.com/india-news/byjus-to-lay-off-500-employees-amid-financial-crunch-
report-5360837#:~:text=to%20streamline%20operations.-,The%20layoff%20in%20the
%20embattled%20edtech%20company%20began%2015%2D20,the%20'worst%20case
%20scenario'.
4
1.6 Research Methodology:
This paper has adapted ‘Doctrinal Research.’ This paper is well structed around the factors
contributing to the decline of Byju’s and collected information from various credible and trusted
sources.
1.7 Research Plan:
To go in depth on the history of Byju’s, as well as the various factors including the financial and
management decisions, business model, marketing factors, change in leadership contributed to
the downfall of the company.
Chapter2: The Rise of Byju’s
Byju's started as a simple mobile application to provide K-12 learning content. The app focused
on making learning interesting and interactive in the most engaging way possible. It explained
complex concepts with the help of multimedia content, such as videos and quizzes, making it
more relatable and enjoyable to students. This unique approach to education made it more
accessible, especially for students in far-flung areas or busy schedules.
Thus, the content of the application was designed around personalized learning, responding to
each learner's pace and progress. Personalized learning was very far from how one would learn
in a classroom, considering that students all tend to learn at the same clip irrespective of their
ability.3 Many significant investments by venture capital firms, including Sequoia Capital and
Tiger Global, had further supported the growth trajectory of Byju's. Its operations scaled, both in
India and globally, after such investments. Major funding rounds attracted Byju's aggressively,
because it wanted to expand its offerings and reach more and more customers. Besides
expanding its user base through acquisitions, Byju's also adopted an acquisition strategy. Some
notable ones are:
WhiteHat Jr. (2020): It is focused on teaching coding skills for children, which has entered the
coding and skill development sector for Byju's.
3
Anushree Pratap, & Anushree Pratap. (2024, October 28). Post Byju’s, edtech sector sets
new course on steady demand. Deccan Herald.
https://www.deccanherald.com/business/post-byju-s-edtech-sector-sets-new-course-on-
steady-demand-3251201#:~:text=The%20edtech%20sector%20is%20seeing,artificial
%20intelligence%2C%20especially%20generative%20AI.&text=Representative%20Image.
5
Toppr (2021): A learning platform for K12 pupils, which would be adding more content and
improving competitive advantages.
Aakash Educational Services (2021): Major acquisition that helped Byju expand its footprint in
the offline coaching and competitive examinations space, thereby making it a market leader in
entrance exam preparation, such as JEE and NEET.
It not only helped Byju's diversify its offerings but also increased its market share.4 An important
reason for its soaring growth was the marketing strategy followed by Byju's. The company
created a strong brand presence by undertaking digital marketing, celebrity endorsements, and
targeted advertising. One of the most iconic features of the marketing of Byju's was its
association with well-known personalities, that is, Indian cricketer MS Dhoni. Credibility to the
brand came with identification before people belonging to various demographics. The company
also invested heavily in content marketing, posting commercials to show the benefits of their
learning app and how it empowers students to enhance their performance. Their advertisements
were not only viewed on television but were also distributed across the digital world like
YouTube, Instagram, and Facebook, touching millions of students and parents around the globe.5
Chapter 3: Understanding the demise of Byju’s
The scope of decline of Byju's includes an array of factors such as financial troubles, operational
inefficiencies, competition within the market, customers' dissatisfaction, and widespread ed-tech
space trend. To get a deeper insight into the scope and the factors behind the decline, here are
key dimensions along with website references for further exploration:
4
Singh, M. (2024, October 18). Byju’s founder says his edtech startup, once worth $22B, is
now ‘worth zero’ TechCrunch. https://techcrunch.com/2024/10/17/byjus-founder-says-his-
edtech-startup-once-worth-22b-is-now-worth-zero/
5
Rajagopal, K. (2024, October 23). Byju’s insolvency case: Supreme Court sets aside NCLAT
decision. The Hindu. https://www.thehindu.com/news/national/byjus-insolvency-case-
supreme-court-sets-aside-nclat-decision/article68785981.ece#:~:text=The%20NCLAT%2C
%20on%20August%202,with%20the%20BCCI%20in%202019.
6
3.2Financial and Operational Struggles*
Declining Valuation and Losses: Byju's aggressive growth, on the back of acquisitions and
substantial marketing spends, failed to yield sustainable profitability. Instead, losses rose
dramatically, affecting its valuation drastically, from $21 billion to lesser estimates. Financial
management, dependence on venture capital for excessive funding, and the failure to achieve
profitability have further worsened the situation.6 7
3.3 Stakeholder Effect
Employees: Byju's has faced several rounds of layoffs as it tries to streamline its operations and
cut costs. Thousands of employees were let go, which has hurt morale and its reputation as a
good employer.
Investors: Several high-profile investors are getting increasingly leery about Byju's prospects
due to concerns relating to its governance, accounting practices, and its mounting losses.8
3.4 Regulatory Scrutiny and Legal Challenges
Byju’s aggressive marketing tactics and customer acquisition strategies have led to legal issues,
particularly regarding its sales and refund policies. The company has faced scrutiny from
regulators in India for its practices, and delayed audits have led to a loss of trust. 9
6
Soni, S. (2018, March 14). Decoding Byju’s Journey From Start-up to Unicorn. Entrepreneur.
https://web.archive.org/web/20180324083500/https://www.entrepreneur.com/article/310403
7
What Went Wrong With Byju's, Which Was Once Valued At $22 Billion. (n.d.). NDTV.com.
https://www.ndtv.com/business-news/byjus-unraveled-the-meteoric-rise-and-staggering-fall-
of-ed-tech-titan-5003601
8
ETtech. (2024, January 13). From $22 billion to $1 billion: Byju’s valuation at BlackRock
bottom. The Economic Times.
https://economictimes.indiatimes.com/tech/startups/blackrock-slashes-byjus-valuation-by-
95-to-1-billion-report/articleshow/106746640.cms?from=mdr
9
Bhalla, K. (2021, July 27). Byju’s last two acquisitions and a deal with Disney reveal its
American dream — one that is anchored in India | Business Insider India. Business Insider.
7
3.5 Market Competition and Changing Consumer Preferences
Competition Intensifying: Domestic as well as international competitors are always on the rise
for Byju's. These include products from Unacademy, Vedantu, and Coursera, Skillshare, and
Khan Academy, which provide similar products at a lesser price.
Changing Preferences: After the pandemic-induced surge in demand for online education,
many students are returning to traditional classroom learning or opting for hybrid models,
impacting Byju's core business.10
3.6 Reputation Damage and Trust Issues
Byju's is in deep trouble for aggressive marketing and sales acrobatics, and there has been a loss
of consumer trust. Customers who make an erroneous investment in Byju's are frustrated and
agitated due to a lack of clarity in terminating the subscription or getting refunds. 11
3.7 Impact on Ed-Tech Industry
Industry-wide Effects: The collapse of Byju's has had a broader industry-wide impact with a
message to other companies that have also taken high growth in the pipeline without focusing on
profitability. Now, investors are more cautious, and funding conditions are tight for any ed-tech
startups.12
https://www.businessinsider.in/business/news/byjus-last-two-acquisitions-and-a-deal-with-
disney-reveal-its-american-dream/articleshow/84783749.cms
10
India, T. O. (2024, August 26). Byju’s asked to refund ₹1.12L for ‘deficiency in service.’
The Times of India. https://timesofindia.indiatimes.com/city/bhubaneswar/byjus-asked-to-
refund-112l-for-deficiency-in-service/articleshow/112820304.cms
11
India, F. M., & India, F. M. (2024, February 19). Article | Reasons behind Byju’s Downfall.
Foundr Magazine India. https://foundrmagazine.in/reasons-behind-byjus-downfall/
8
Chapter 4: Implications for the Ed-Tech Industry
4.2 Sustainability of Growth Models
The ed-tech space needs to move towards a more sustainable growth model. Focus purely on
funding rounds and aggressive spending on acquisitions leads to cash burn without a
corresponding hike in revenue. Companies should focus on building sustainable, profitable
business models to ensure their survival in the long run.
4.3 Customer-Centric Approach
The ed-tech sector will look to put the customer first and, consequently, build in transparency.
First, while companies develop sales tactics, selling should be through value for money and on-
message communication. The use of a customer-centric approach will hold the key to
maintaining long-term users as well as brand loyalty.
4.4 Employee Well-being and Retention
Ed-tech industry needs to invest in the employees and promises job security. In the context of
growing competition for talent in tech and education sectors, companies must develop a positive
working environment, fair compensation package, and clear opportunities for career growths.
Long-term success of any company is very much dependent on employee retention.
4.5 Diversification and Flexibility Byju's
The ed-tech industry must be cautious about over-diversifying and losing focus on its core
products. Companies need to assess their capabilities and market demands carefully before
expanding into new segments. Adaptability is key, as the ed-tech market is constantly evolving,
and companies must remain flexible to meet shifting consumer demands.
12
Bhalla, K. (2022, May 27). The edtech bubble is bursting as schools, colleges reopen and
funds dry up | Business Insider India. Business Insider.
https://www.businessinsider.in/business/startups/news/the-edtech-bubble-is-bursting-as-
schools-colleges-reopen-and-funds-dry-up/articleshow/91826696.cms
9
4.6 Competition and Market Saturation
The struggle of Byju's signifies increasing competition in the ed-tech space. New entrants into
the market must make a difference, whether it is through cost-effective pricing, individualized
learning capabilities, or just new and innovative content. Existing players must innovate
constantly and keep a check on competition.
4.7 Impact on Investor Sentiment
Ed-tech investment-seeking companies will have to undergo more scrutiny. Clear growth
strategies and profitability will be crucial for ed-tech companies to demonstrate to investors.
Investors will favor companies with sound financial planning, efficient operations, and
sustainable growth strategies.
Chapter 5: Conclusion
The decline of Byju's is a highly complex and multifaceted issue, motivated by quite a few
financial mismanagement, aggressive growth strategies, customer dissatisfaction, and increased
competition. While Byju's continues to hold a dominant position in the ed-tech sector, the issues
faced by the company remind us that fast-growing tech firms do not all turn out to be winners.
The ed-tech industry as a whole must learn from Byju’s mistakes, focusing on sustainable
growth, customer-centric models, employment well-being and robust governance practices to
avoid similar pitfalls.
Bibliography
1. India, F. M., & India, F. M. (2024, February 19). Article | Reasons behind Byju’s
Downfall. Foundr Magazine India. https://foundrmagazine.in/reasons-behind-byjus-
downfall/
2. What Went Wrong With Byju's, Which Was Once Valued At $22 Billion. (n.d.).
NDTV.com. https://www.ndtv.com/business-news/byjus-unraveled-the-meteoric-rise-
and-staggering-fall-of-ed-tech-titan-5003601
3. Soni, S. (2018, March 14). Decoding Byju’s Journey From Start-up to Unicorn.
Entrepreneur.
https://web.archive.org/web/20180324083500/https://www.entrepreneur.com/
article/310403
4. Bhalla, K. (2021, July 27). Byju’s last two acquisitions and a deal with Disney reveal
its American dream — one that is anchored in India | Business Insider India. Business
10
Insider. https://www.businessinsider.in/business/news/byjus-last-two-acquisitions-
and-a-deal-with-disney-reveal-its-american-dream/articleshow/84783749.cms
5. Garg, N., Garg, N., & Garg, N. (2023, January 24). BYJU’S Case Study: Marketing
Strategies & Campaigns. Waffle Bytes Blog. https://wafflebytes.com/blog/byjus-case-
study-marketing-strategies-campaigns/
6. ETtech. (2024, January 13). From $22 billion to $1 billion: Byju’s valuation at
BlackRock bottom. The Economic Times.
https://economictimes.indiatimes.com/tech/startups/blackrock-slashes-byjus-
valuation-by-95-to-1-billion-report/articleshow/106746640.cms?from=mdr
7. Singh, M. (2024, October 18). Byju’s founder says his edtech startup, once worth
$22B, is now ‘worth zero’ TechCrunch. https://techcrunch.com/2024/10/17/byjus-
founder-says-his-edtech-startup-once-worth-22b-is-now-worth-zero/
8. Byju's To Lay Off 500 Employees Amid Financial Crunch: Report. (n.d.). NDTV.com.
https://www.ndtv.com/india-news/byjus-to-lay-off-500-employees-amid-financial-
crunch-report-5360837#:~:text=to%20streamline%20operations.-,The%20layoff
%20in%20the%20embattled%20edtech%20company%20began%2015%2D20,the
%20'worst%20case%20scenario'.
9. Rajagopal, K. (2024, October 23). Byju’s insolvency case: Supreme Court sets aside
NCLAT decision. The Hindu. https://www.thehindu.com/news/national/byjus-
insolvency-case-supreme-court-sets-aside-nclat-decision/
article68785981.ece#:~:text=The%20NCLAT%2C%20on%20August%202,with
%20the%20BCCI%20in%202019.
10. Bhalla, K. (2022, May 27). The edtech bubble is bursting as schools, colleges reopen
and funds dry up | Business Insider India. Business Insider.
https://www.businessinsider.in/business/startups/news/the-edtech-bubble-is-bursting-
as-schools-colleges-reopen-and-funds-dry-up/articleshow/91826696.cms
11. India, T. O. (2024, August 26). Byju’s asked to refund ₹1.12L for ‘deficiency in
service.’ The Times of India.
11
https://timesofindia.indiatimes.com/city/bhubaneswar/byjus-asked-to-refund-112l-for-
deficiency-in-service/articleshow/112820304.cms
12. Anushree Pratap, & Anushree Pratap. (2024, October 28). Post Byju’s, edtech sector
sets new course on steady demand. Deccan Herald.
https://www.deccanherald.com/business/post-byju-s-edtech-sector-sets-new-course-
on-steady-demand-3251201#:~:text=The%20edtech%20sector%20is
%20seeing,artificial%20intelligence%2C%20especially%20generative
%20AI.&text=Representative%20Image.
12
