BYJU’s : India’s most valuable ed-tech company?
An Indian parent has many dreams [and expectations] from their kids.
To provide their children with the best education. See them land a dream job. Get them married. Convince them to buy a house, because real estate is the best investment isn’t it?
If we zoom further in, and talk about low income middle class parents, they would do ANYTHING to provide quality education to their kids. That’s their ticket out of poverty.
If you can promise quality education at reasonable costs & sell the dream of an amazing future, you’ve got a killer product.
And, that’s how a lot of ed-tech companies make money.
But if you look at some of the allegations levelled against BYJU’s in recent times, you would seriously question whether it is really that ‘valuable’.
Allegation 1: Predatory sales tactics
Targeting the underprivileged. Showing them a dream & signing them up for a subscription. Providing financing to the people who can’t afford it.
As per an investigation by The Ken, a lot of people didn’t even know they signed up for a loan when they bought a subscription, which is absolutely INSANE.
Allegation 2: Toxic work culture
Long hours. Verbal abuse. Unachievable sales targets. Asked to do ‘anything’ to close the deal. Massive layoffs.
The $22B valuation is a number on a piece of paper. Real value however, is built on the back of customer satisfaction, employee retention & a profitable business model.
And….the ability to get your financials audited on time.
Do you think BYJU’s can buy their way to success?