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BYJU’S CASE STUDY Imagine you are sitting in a packed class, and the teacher is explaining an important concept. While it's seeming that everyone else is understanding the concept and nodding their head in unison, you are feeling a bit off beat, as every word being explained is simply getting bounced off your head. Does this sound familiar? Well it happens to most of us at least once in our student life. While every student has his own pace of learning, it is not manually possible for the teacher to take care of every student. Thankfully, ed-tech sector is growing fast enough to fill this gap. And talking about ed-tech in India, one name that we surely don't afford to miss is Byju’s. Read how an engineer's passion for teaching led him to start Byju's which today is a unicorn start-up and the world’s most valued EdTech company. Byju Raveendran, founder of Byju's, is India's youngest billionaire with $3.05 billion wealth as per Forbes list of India's 100 Richest People (2020).

Byju's - Company Highlights Start-up Name Headquarter Founder Sector Founded Parent Organization Website

BYJU’S Bangalore Byju Raveendran EdTech 2011 Think and Learn Private. Ltd. Byjus.com

Byju's Founder Byju Raveendran is the founder of Byju's Classes, the Education Technology firm whose tagline/slogan is “Fall in love with learning”. Byju's founder and CEO, Byju Raveendran was born in 1980 in

Azhikode, Kerela. He is a B. Tech (mechanical engineering) from Government Engineering College in Kannur, Kerela. Before starting Byju’s, Byju Raveendran was working in a multinational shipping firm as a service engineer. However, his passion lied in teaching which later inspired him to start Byju's. Besides being an entrepreneur and teacher, Byju Raveendran is also an expert sports person who played six different sports including football, cricket, table tennis and badminton in the University level. Popularly known as Byju sir among his students, Byju cleared CAT twice with 100 percentiles, though he never joined any IIM.

How was Byju's Started Coming from a small village named Azhikode in Kerela, Byju Raveendran was an engineer with a shipping company based in the UK. While he was working, he started to help his friends in cracking the CAT exam, which is an entrance exam for getting into the IIMs. Back then to test himself he also gave the exam and got 100 percentiles. He did not join any of the IIMs but started teaching students for their mathematics exams. Initially, he started taking maths workshops for free and then slowly started charging when he got the confidence. At one point of time in his career, he got so famous that in a single workshop more than 20000 students participated. In the year 2009, he started to record his videos of the workshops that he took. His former students who graduated from IIMs approached him saying that he should start Byju’s classes to a new domain. That is when ‘Think and Learn Pvt Ltd’ was formed to create content for school students. In 2015 he launched Byju’s – The Learning App and in the first year itself, the app was downloaded by more than 5.5 million people.

Byju's - Name, Logo and Tagline Byju's tagline is "Fall in love with learning". While Byju’s got its name from its founders' first name.

Byju's - Business Model and Revenue Model Byju’s works on a freemium business model which means that they offer their customers both complementary and extra-cost (premium) services. The

company asks for the details of the students on their application or website and offers them a free 15 days trial. After the free trial one has to buy the courses from Byju’s and that is how the freemium business model is created. The company provides one to one mentoring to its subscribers and also provides feedback to the child’s parents. Byju’s also offers classroom coaching in the city of Noida, Gurgaon and surrounding places. There are three ways in which Byju’s is earning its revenue:

 The first one is through the app. After the 15 days free trial, one has to purchase the courses to continue their educational journey on Byju’s. The app offers a variety of test series, courses, etc.  Secondly, it offers its Byju’s products which are tablets that the customers have to buy with the course of their choice. This tablet has the videos, tests, practice questions, quizzes, etc. inbuilt for the course that the customer has opted.  And the last way is thorough the classroom teachings which are restricted to only a few cities.

Byju's - Funding and Investors Byju’s attracted and appealed many investors since its initial phase. In the year 2016, Byju's became the first company in Asia to receive funding from ChanZuckerberg Initiative, which is a joint initiative by Facebook founder Mark Zuckerberg and his wife Priscilla Chan.

Details of Byju’s Funding

DATE

AMOUNT (in Million USD)

LEAD INVESTOR

March 2016

75

Sequoia Capital India & Sofina

September 2016

50

Chan Zuckerberg

Initiative & Sequoia Capital India December 2016

15

IFC Venture Capital Group & Inno Ven Capital

March 2017

30

Verlinvest

August 2017

40

Tencent Holdings

December 2018

540

Prosus & Naspers

March 2019

332

General Atlantic

March 2019

31

General Atlantic & Tencent Holdings

July 2019

150

Qatar Investment Authority

January 2020

200

Tiger Global Management

February 2020

200

General Atlantic

August 2020

123

DST Global

September 2020

500

Silver Lake

Challenges faced by Byju's As said by Byju Raveendran, the founder of Byju's , converting the students to paid subscribers, after completion of the free trial period is an everyday challenge for Byju's. Also, the company is working towards expanding to other English-speaking countries, and finding suitable partners to aid this expansion is a challenge that the company is facing.

Byju's - Competitors / Alternatives Today people are rapidly moving towards digitization and are adapting elearning approaches. Because of this revolution, like Byju’s many other companies are working on a similar concept. Although the quality education, technology-friendly, and high-end services are still being provided by very few service providers of online education platforms and Byju’s is leading all of them. Byju’s top competitors are Meritnation.com, Vedantu, Teachable, Khan Academy, Simplilearn, Schoolwise and Toppr.

Byju's - Revenue and Valuation In the FY 2017-2018, Byju's reported revenue worth Rs 490 crore, which increased to Rs 1,430 crore in FY 2018-2019. After Tiger Global Management invested $200 million in January 2020, Byju's was valued at $10.5 billion.

Byju's – Acquisitions Byju’s has acquired SIX companies till date: DATE

COMPANY

ABOUT COMPANY

VALUE

January 2017

Vidyartha

A customised learning guidance platform for Class 8th-12th students.

Rs. 50 Crores

July 2017

Tutor Vista

Online tutoring services platform.

Undisclosed

July 2017

Edurite

Audio-Visual educational content provider.

Undisclosed

July 2018

Math Adventures

A platform that aids kids to learn math in a fun way.

Undisclosed

Osmo

Platform offers educational courses with the use of games, videos and other materials.

$120 Million

August 2020

White Hat Jr.

Offers online coding classes to school-going students in India and the US

$300 Million

Septembe r 2020

Lab in App

Offers lab like simulations for science students on a mobile app.

Undisclosed

January 2019

Recently, Byju’s acquired EdTech start-up White Hat Jr. for $300 million for an all-cash deal. This makes the 18-month-old Mumbai-headquartered White Hat Jr., that offers online coding classes to school-going students in India and the U.S., the fastest exit story at this size in the Indian start-up ecosystem. White Hat Jr. will continue to operate as a separate entity for now. In September 2020, It also Acquired LabInApp, a start-up that offers lab-like simulations for science students on a mobile app.

Byju's - Growth Byju’s as a start-up is a very innovative concept and has achieved huge success in the market. It follows rigorous advertising strategies. Shahrukh Khan, one of the most prominent actors of Bollywood is the brand ambassador of Byju’s. The company has so far captured the Indian market very well and has made its presence in the Middle East as well. Byju's is now aiming to capture markets in the United States, the United Kingdom, South Africa, and other global markets. To expand its footprints in the USA, Byju's acquired US-based learning platform Osmo in January 2019. The company also tied up with Disney to launch its early learning app for classes 1-3. Byju's was also in news recently for all the good reasons, as it took a really positive step during the coronavirus crisis. As schools in different parts of India were shut down due to coronavirus outbreak, Byju's made its learning app free for the students till the end of April 2020, so that students can enjoy uninterrupted learning....