The Rise and Fall of India's Edtech Unicorn

📈BYJU's grew rapidly and became a leading edtech company in India, with millions of users and a valuation of $22 billion in 2022.

⚖️The company faced challenges due to its marketing budget, relying heavily on advertising and promotional expenses, which accounted for 32% of its total expenses.

🔎Questionable sales practices, such as instilling fear in parents and pushing loans for course purchases, led to a loss of reputation and trust.

💸BYJU's recorded inflated revenue by not following the accrual principle, inflating its financial position and misleading investors.

📉Financial challenges, including mounting losses, foreign exchange violations, and delayed financial filings, have raised concerns among investors.

What led to BYJU's decline?

—BYJU's decline was caused by heavy marketing expenses, questionable sales practices, inflated revenue recognition, financial mismanagement, and loss of reputation.

What were the consequences of BYJU's marketing strategy?

—BYJU's heavy reliance on advertising and promotional expenses led to mounting losses, layoffs, and a decline in valuation. It also eroded trust and created a negative perception among customers.

How did BYJU's record inflated revenue?

—BYJU's recorded all course fees in the year of purchase instead of splitting them over the course duration, inflating its revenue and misleading investors.

What were the questionable sales practices of BYJU's?

—BYJU's sales associates were accused of instilling fear in parents about their children's future and pushing loans for course purchases, resulting in loss of trust and reputation.

What are the financial challenges faced by BYJU's?

—BYJU's has faced mounting losses, foreign exchange violations investigations, delayed financial filings, and concerns from investors about financial mismanagement.

00:01BYJU's, once a highly valued edtech startup, grew rapidly and became a leading player in the industry.

05:59BYJU's faced challenges due to its heavy marketing expenses, which accounted for a significant portion of its total expenses.

09:19Questionable sales practices, including fear mongering and pushing loans, eroded trust and created a negative perception of the brand.

11:59BYJU's recorded inflated revenue by not following the accrual principle, misleading investors about its financial position.

16:32BYJU's is facing financial challenges, including mounting losses, foreign exchange violations investigations, and delayed financial filings.