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How Byju’s Went From Edtech Unicorn to Edtech Disaster: 10 Reasons Behind Its Failure

Byju's: The Rise and Fall of an Edtech Giant

Byju's, the world's largest edtech company, was once hailed as a success story of innovation and disruption in the education sector. Founded in 2011 by Byju Raveendran, a former teacher and engineer, the company offered online learning solutions for students from kindergarten to competitive exams and professional upskilling. Byju's claimed to have over 150 million registered users and 10 million paid subscribers across 120 countries, and was valued at $16.5 billion in 2021, making it India's most valuable startup.




However, in 2022, Byju's faced a series of controversies and challenges that tarnished its reputation and raised questions about its sustainability and ethics. Here are 10 reasons why Byju's is failing:


1. Layoffs: In 2022, Byju's laid off over 2,500 employees, or 5% of its workforce, citing restructuring and cost-cutting as the reasons. However, many former employees alleged that they were fired without notice or severance pay, and that the company had unrealistic targets and a toxic work culture. Some also claimed that they were asked to resign or face termination.

2. Unethical Accounting Practices: Multiple reports and investigations revealed that Byju's indulged in unethical accounting practices, such as inflating its operational revenue to attract more investments, misreporting its user base and growth metrics, and avoiding taxes by routing funds through offshore entities. Such fraudulent activities eroded the trust of investors and regulators and raised serious concerns about the company's integrity.

3. Negative Public Perception: Byju's faced a backlash from the public due to its aggressive and misleading marketing strategies, such as using celebrities and influencers to endorse its products, making false claims about its learning outcomes and effectiveness, and exploiting the fears and aspirations of parents and students. Additionally, the company was accused of violating data privacy and security norms, as well as engaging in plagiarism and intellectual property theft.

4. Market Saturation: The online education market has become increasingly competitive, with numerous players offering similar services. If Byju's fails to differentiate itself or keep up with evolving market demands, it may struggle to maintain its market share. Moreover, the company may face regulatory hurdles and legal challenges in some of the markets it operates in or plans to enter.

5. Scalability Issues: Byju's rapid growth and expansion into new markets may lead to scalability challenges. Ensuring consistent quality and personalized learning experiences at scale can be a complex task, and failure to maintain high standards could impact customer satisfaction and retention. Additionally, the company may face operational difficulties and inefficiencies due to its large size and complexity.

6. Pricing and Affordability: Byju's subscription-based model may face challenges if pricing becomes a barrier for potential users. If competitors offer more affordable options or if Byju's fails to provide sufficient value for the cost, it could result in customer attrition. Furthermore, the company may face criticism for being elitist and inaccessible to the masses, especially in developing countries where education is a basic right.

7. Evolving Educational Landscape: Changes in educational policies, teaching methodologies, or curriculum requirements may pose challenges for Byju's if it is slow to adapt or fails to align its offerings with the evolving needs of students and educators. For instance, the company may face difficulties in complying with the new National Education Policy (NEP) in India, which aims to overhaul the education system and promote experiential learning.

8. Ineffective Learning Experience: If users find the learning experience provided by Byju's to be ineffective or not engaging, it could lead to reduced user satisfaction and lower retention rates. Students may seek alternative platforms or traditional educational methods that they find more effective in meeting their learning needs. Moreover, the company may face criticism for promoting rote learning and standardization rather than critical thinking and creativity.

9. Lack of Personalization: Byju's uses technology to provide personalized learning experiences. However, if the platform fails to deliver tailored content and individualized learning paths effectively, students may feel that their specific needs and learning styles are not adequately addressed. Additionally, the company may face competition from platforms that offer more customization and flexibility to users.

10. Limited Subject Coverage: Byju's primarily focuses on certain core subjects, such as math and science. If the platform lacks comprehensive coverage of other subjects or fails to provide a holistic educational experience, it may limit its appeal to a broader range of students and educational needs. Furthermore, the company may face pressure from users and stakeholders to diversify its offerings and cater to emerging domains and skills.


Byju's, once a shining star in the edtech space, is now facing a dark reality. The company needs to address the issues and challenges that are plaguing its business and reputation, and reinvent itself to survive and thrive in the changing educational landscape. Otherwise, it may soon become a case study of how not to run an edtech company.


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