BYJU’S Dark Side Of Story Huge Loss

BYJU’S Dark Side Of Story | It is India first EdTech Unicorn Company and the Current Valuation is 1,80,000 crore but due to losses the company in highlight.

About Byju's

Education and EdTech is such a sector in which some such growth has been seen in the last few years which is hard to believe. In the past few years, one name that we have been hearing for one reason or the other is byju’s. The name of the founder of this venture is Ravichandran byju’s who started this EdTech venture. In the initial few years, the venture did not do much because people in India have a lot of on screen time after internet revolution but it did not affect the study sector. Its target customer, who is a student of class 1 to class 12, his parents used to discourage him from studying on phone or internet. But one day time took such a turn that reading online became a compulsion for everyone, that was the time when everyone had to be locked down at home to save their lives from diseases like Covid. In times of such distress when people were forced to stay at home to save their lives, BYJU’S incashed this as a lifetime opputunity.

Byju's Marketing Spend

As we all know that byju’s is an edtech company but ever since this company started its loss is increasing every year. Its loss in the year 2020 was 298 crores, which increased to 4588 crores in the balance sheet of 2021. Its loss increased 15 times as compared to last year. Last year byju’s also came in limelite for another reason which was due to non-audit of books. The name of the audit company of byju s is deloitte, according to them, the audit was delayed due to non-availability of proper data, but when deloitte filed the balance sheet and made it public, everyone was shocked. The loss of the company increased 15 times as compared to last year. Then the investors started asking how would you justify this. Either bring the company to profit or the investor backs out.
Even after being in the education sector, byju’s spent the least in the education department and kept the company as a marketing company instead of an educated institution. Byju’s’ strategy was to make parents and children its customers by offering various offers and free trials.

Byju’s paid 300 crores in the whole year to the teacher, but spent marketing as if money comes for free. Don’t know how many crores were paid to Shahrukh, spent 1000 crores to put the logo on the blue T-shirt of the Indian cricket team. India team has not yet been able to qualify for FIFA, but Byju’s has also sponsored the Qatar FIFA tournament. So much marketing spend is a big reason for its loss. They spent 200 rupees for the revenue of 100 rupees and that too not once, they are doing it again and again. In our view it is the Byju’s dark side towards investor.We do not say that marketing should not be spent, but it should have some scope and limits.

Byju's Revenue income

The revenue model of byju’s is by selling courses to children, giving tuition classes and selling tablets with subscription. Byju’s makes business devolpment associates to sell courses, whose work is only and only to sell packages. They are very trained in selling packages. This is to sell the package by showing the parents that the children will have a good future and improvement. If still, if the parents do not agree, then by offering 15 days free study course, they leave no stone unturned to make the child their customer with their study pattern. If the parents say that they do not have the money to afford, then they are told to pay in parts, because of which the parents feel that they are paying in parts, but in reality a loan is started in the bank in their name. In our view it is the byju’s dark side towards child and the parents who believe in them for better education of the child.

In byju’s, if BDA is not able to fulfill the target, then how much pressure and abuses he has to listen to from his manager, you will find such videos very easily on YouTube.

20191300 crore
20202381 crore
20212280 crore

In the clarification of the revenue of the company which was down in 2021, the company says that the revenue has not gone down but has doubled, earlier the 2 year course was booked in the books in one year, now it is booked in 2 years. .
Ravichandran is telling the company to go in the direction of profitable and growth and plans to touch the revenue of 10000 crores Rupees very soon. It would be good if the company does this, at least the investors’ faith will remain on Indian startups.

Byju's Dark Side of Story Expenses

Byju’s Dark Side | There is only one mantra to make any business profitable, either increase sales or reduce expenses, on which byju’s should also take action at the immediate level. May be they are doing it but even today one question comes in everyone’s mind that how did the valuation of the company become 180000 crores even after so much loss. By thinking what does the investor do the valuation, we are able to understand that what the investors see, lest this balloon of loss put the entire startups in a question mark.

YearTotal Expenses
20202873 crore
20217027 crore

Byju’s total expenses compared to last year 2.5 times Multiplied and the revenue decreases by 100 crores, this is a red alarm for any investor.

YearAd Spend
2020900 Crore
20212250 Crore

Advertisement and marketing spend is also seen, there is a huge increase, the reason for this could be Team India’s 5-year endorsement and sponsorship in FIFA.

YearTeacher Salary
2020300 Crore
2021300 Crore

One department where the company has kept its control is teacher salary. It is very surprising that the company which does the business of teaching, instead of spending on teachers and education, believes more in running its centers by spending on marketing. If she had paid more attention to the quality and retention of the teachers, she probably would not have had to spend such a huge amount on marketing.

Byjus expenses
Image Credit FINTRACKR

Aakash byju's

byju's dark side of story

After all, why did the company buy Aakash institute for $ 1 billion i.e. 8000 crores. When byju’s earned very fast growth in covid time, then no one knew how long this pandemic will last. With this thinking that there will be a change in the usage pattern of people, many startups jumped into the market. But as soon as covid came under control and people started coming out of their homes, the businesses which were started with the intention of cashing in on Covid started shutting down. Byju’s also got stuck in this dilemma as to what to do. But he had investor funding, so he thought it right to diversify his model offline. Aakash institute is a very well known name in the education sector and has a very good reputation which can be gauged from the crowd outside their centers anytime. By buying this, byju’s strengthened its brand as well as strengthened its offline hold as well as made its course portfolio much better than its competition.

It is not that byju’s only bought Aakash institute but it also bought Great learning for $600 million and byju’s also acquired White Hat Jr. for $300 million. This is the same company that claims to teach a 6 year old child how to make computer coding and apps. It leaves no stone unturned to attract children and parents by running the story of Wolf Gupta.
We all want our child to learn everything and get knowledge of everything but such misleading propaganda spoils the reputation of the company.
White Hat Junior earned a revenue of 326 crores in the year 2021 and spent 1548 crores to bring this revenue. Almost 5 times, who would call this venture a wise decision? Will clearly say that if you want to set the investor’s money on fire, just set it on fire.
This is just our opinion, it is not our motive at all to hurt anyone. As we are seeing and hearing that recession is about to come and in view of that big companies like Amazon, Facebook, twitter have started retrenchment of staff so how can we Indians stay behind then our byju’s also 2500 Staff cuts have been announced

Byju's Review

In my view, byju’s reviews are not very positive, the main reason is his approach towards the venture. Instead of increasing the level of education, he used money more in marketing. This is one of the main reasons why I rate it negative. It is not necessary that everyone’s thinking is the same as ours, but we express our views after meeting some parents and after proper research. It is not our intention to hurt anyone’s feelings.

Frequently Asked Questions?

Class 4 -10 – Maths & Science (SD Card)Rs. 26,000.00
Jee Live Online Classes for Class 12thRs 85,0001 Year
Jee Live Online Classes for Class 11thRs 1,35,0002 Year
Jee Live Online Classes for RepeaterRs 95,0001 Year

s leo.

It is Paid Courses only free Trails are available for first 7-15 days .

Byju Raveendran co-founded online edtech company Byju’s in 2011 with his wife Divya Gokulnath.

BYJU’s had booked a loss of Rs 4,588 crore and revenue of Rs 2,428 crore for the financial year ended March 31, 2021.

Its all depends on market standards but on a avergae its start from RS 3.5 lakh to RS 15.50 lakhs.


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