Byju’s Inevitable Downfall (Three Reasons)

In March 2022, Byju’s learner app had over 150 million users and the company was valued at $22 billion. In October 2023, merely 18 months later, it had hardly 50 million users and was valued at $1 billion. [1]

As of October 2024, experts suggest its valuation is almost at zero.

Although the fall was drastic, it wasn’t surprising.

Here are three reasons why.

1. Terrible Product

They were selling a tablet where the students could access their learning materials. The problem was, the learning material was shit. Users frequently reported inconsistencies and errors, which was horrible considering Byju’s learning app was marketed as a premium product.

The content was so shit that 80% of the company’s revenue came from tablet sales while the remaining 20% was attributed to course purchases. [2]

2. Predatory Sales Methods

Apart from blatantly lying about the potential impact of their product and course content, Byju’s sales executives were encouraged to target low-income households. The primary reason was that it would be easier to leverage fear and coercion to make a sale.

Typically, financial decision-makers in low-income households have limited education, which translates to a lack of in-depth understanding of academic matters. It is quite easy to get them interested by dangling words like “IIT” or “NEET”, and citing that if they don’t, their kids will be left behind.

Of course, they promised easy refunds but they became hard to reach after the sale was completed.

Additionally, the company itself pushed the salespersons to run this strategy to put even more pressure on the potential customers. Many executives labeled this work culture as ‘toxic’ and disagreed with the sales methods on a personal level.

3. Other Stupid Stuff

Byju Raveendran is a moron.

Instead of focusing on improving the product or finding users that will stick, the dumbass spent money on retarded things. 

Sponsoring the IPL, rapid high-profile acquisitions of Whitehat Jr. and Aakash Educational Services, and hiring celebrities who haven’t achieved their success through academics to promote academic products ruined the reputation further.

There were many other controversies as well. Delayed financial reporting, not remaining accountable to the investors, and defaulting loans also contributed to the brand’s downfall.

Conclusion: Don’t Scam People

When Byju’s was a household name, I knew it wouldn’t go far because a former sales executive told me about the sinister sales tactics. If the employees know what you are doing is wrong and your product is below average, and that’s being quite liberal, and you are scamming your customers, your time in the market is limited.

Raveendran, as I mentioned earlier, was a moron. A moron with dreams. Dude wanted to earn billions without generating any real value. He literally thought that Messi and SRK would save his reputation. Marketing doesn’t work if your product is a steaming pile of garbage.

I am glad that he lost it all.

Until next time,

Tara

References

1. Byju’s fall

2. Byju’s made more money selling tablets