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    What Happened To Byjus

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    Raghu.G
    Byju's reported a net loss of over Rs 4,588 crore in FY21 despite revenues of Rs 2,428 crore. The main factors for Byju's financial troubles include expensive acquisitions like WhiteHat Jr that lost money, high marketing expenses, staff attrition, and competition from other edtech startups like Vedantu and Unacademy. Unless Byju's makes changes, the document concludes there is a very high chance of bankruptcy.

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    What Happened To Byjus

    Uploaded by

    Raghu.G
    115 views12 pages
    Byju's reported a net loss of over Rs 4,588 crore in FY21 despite revenues of Rs 2,428 crore. The main factors for Byju's financial troubles include expensive acquisitions like WhiteHat Jr that lost money, high marketing expenses, staff attrition, and competition from other edtech startups like Vedantu and Unacademy. Unless Byju's makes changes, the document concludes there is a very high chance of bankruptcy.

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    Byjus a Case Study , the Ups and Down of Byjus

    Original Title

    What happened to Byjus

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    Byju's reported a net loss of over Rs 4,588 crore in FY21 despite revenues of Rs 2,428 crore. The main factors for Byju's financial troubles include expensive acquisitions like WhiteHat Jr that lost money, high marketing expenses, staff attrition, and competition from other edtech startups like Vedantu and Unacademy. Unless Byju's makes changes, the document concludes there is a very high chance of bankruptcy.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    115 views12 pages

    What Happened To Byjus

    Uploaded by

    Raghu.G
    Byju's reported a net loss of over Rs 4,588 crore in FY21 despite revenues of Rs 2,428 crore. The main factors for Byju's financial troubles include expensive acquisitions like WhiteHat Jr that lost money, high marketing expenses, staff attrition, and competition from other edtech startups like Vedantu and Unacademy. Unless Byju's makes changes, the document concludes there is a very high chance of bankruptcy.

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    WHY BYJUS ARE IN TROUBLE

    A Case Study by
    Raghu.G
    PROFILE
    • Byju Raveendran is an Indian entrepreneur,
    investor and educator who, with his wife Divya
    Gokulnath, co-founded Byju's. 
    • Born: 6 July 1981 (age 41 years), Azhikode
    Kannur, Kerala
    • Education: GCE KANNUR (1996–2000)
    • Nationality: Indian
    • Organization founded: BYJU'S
    • Title: Founder & CEO of Byju's
    PROFILE
    • A former math tutor, Byju Raveendran founded online ed-
    tech company Byju's in 2011.
    • He was CAT topper and in early days his offline tution
    centers got very warm welcome , students rushed to his
    coaching centres for Entrance exams and His students
    had very good success rate.
    • This paved the way to start online Coaching centres in
    2011
    • In 2019, Byju Raveendran's net worth grew to $1 Billion. In
    July 2019, “Byju's-The Learning App” became the official
    sponsor for the Indian Cricket Team
    TURNAROUND STORY
    • Byju's reported an astounding net loss of over
    Rs 4,588 crore in FY21 on consolidated
    revenues of Rs 2,428 crore.

    • Edtech decacorn Byju's delayed the inevitable,


    but couldn’t soften the blow. After reporting its
    FY21 financials post a 12-month delay, the
    edtech firm has been the subject of heightened
    scrutiny.
    THE MAIN FACTORS FOR FAILURE
    • ACQUISTIONS
    • HIRING
    • VERY EXPENSIVE MARKETING
    • HARSH METHOD OF MARKETING
    • VERY HIGH ATTRITION AMONG STAFF
    • LACK OF QUALITY AMONG TUTORS
    • VERY HIGH FEES
    • MIS MANAGEMENT
    • COMPETITION
    HIGH PROFILE SPONSORSHIPS
    • BYJU’S Renews Cricket Sponsorship Deal With
    BCCI At Nearly $55 Mn
    • Byju’s spends $30-40 million on FIFA World Cup
    sponsorship
    • BYJU’s  sponsorship with the 
    International Cricket Council (ICC) and title
    sponsorship of Kerala Blasters football club too.
    • AMBASSADORS – Sharukh Khan, Mohanlal,
    Neeraj Chopra, PV Sindhu,
    How have Byju’s acquisitions fared?

    • WhiteHat Jr, a startup which offers coding


    classes to school kids that Byju’s had acquired
    for $200 million in 2020, could contribute just
    Rs 326 crore to Byju’s total revenue in FY21.
    But at Rs 1,548 crore, its losses were five times
    that. In fact, WhiteHat Jr contributed around a
    third of Byju’s consolidated losses in the year
    ended March 2021.
    Payment towards Byju’s $1 billion dollar
    acquisition of Aakash Educational Services Limited
    is yet to be complete, the financial statements
    revealed. As per the terms of the agreement for
    acquisition of Aakash, consideration to the extent
    of Rs 1,983 crore was due to be paid by Byju’s in
    June 2022. However, this has been deferred to
    September 23.
    BYJU'S Competitors & Alternatives

    Competitor Number of Employee Total


    Name Revenue Employees Growth Funding Valuation
    Vedantu $551.8M 5631 28% $292.9M $1B

    Unacademy $1758.2M 8782 110% $838.5M $3.4B

    Khan $221.5M 959 23% N/A N/A


    Academy

    Toppr $563.4M 2814 26% $112.1M N/A

    Byju’s $7.7 Bln 50000 94% $ 5.5Bln 22 Bln


    CONCLUSION
    • CHANCE OF BANKRUPTCY IS VERY HIGH
    • ENTIRE ENVIRONMENT OF ONLINE EDUCATION
    ALMOST VANISHED
    • STATUTORY AUDITORS DELOITTE, ITSELF ARE NOT
    COMFORTABLE WITH THEIR ACCOUNTING SYSTEM.
    • BYJU WAS A GOOD TUTOR AND WAS SUCCESSFUL IN
    HIS INDIVIDUAL CAPACITY ESPECIALLY FOR CAT , BUT
    THE SAME QUALITY HE WAS UNABLE TO PROVIDE
    THROUGH BYJU’S
    *LET US HOPE FOR REVIVAL *

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