Byju’s, the once-glittering star of the Indian ed-tech scene, seems to be losing its shine. The company is facing several high-profile departures and growing financial difficulties. Among the latest departures is General Counsel Roshan Thomas, a former partner at Shardul Amarchand Mangaldas who joined Byju’s in 2021.
Cash Crunch and Questionable Numbers: Byju’s struggles started bubbling over with reports of an ongoing cash crunch and delayed financial results. Whispers of multiple lawsuits haven’t helped either.
To make matters worse, some parts of the business have even shut down, leaving questions about their future hanging in the air.
In December, investors at the company’s annual general meeting expressed their concerns about the lack of transparency surrounding Byju’s finances. Reports estimate that the company’s parent, Think & Learn, racked up a staggering loss of nearly ₹8,200 crore in FY22, despite exceeding ₹5,000 crore in revenue.
A significant portion of this loss is attributed to writing off the acquisition of the coding platform WhiteHat Jr., a decision that seems questionable in hindsight. In addition, advertisements with Shah Rukh and sponsoring international sports matches didn’t help.
Workforce reductions and restructuring:
Facing significant financial hardships, Byju’s resorted to cutting costs, and unfortunately, many employees bore the brunt of this decision. In September 2023, the company underwent a major restructuring that resulted in the firing of 4,000-4,500 employees. This news sent shockwaves through the industry and sparked concerns about the long-term stability of the company.
In parallel news, students protest alleged exploitation at BYJU’s centre. Students are protesting against edTech giant BYJU, accusing the company of deceptive practices and charging high fees. The protests have been taking place across the country, with students alleging that Byju’s is preying on their desire for a good education and exploiting them financially.
The protests come at a time when Byju’s is already facing several challenges, including financial difficulties and allegations of wrongdoing. The company has been under fire for its aggressive marketing tactics and its treatment of employees.
It remains to be seen how Byju’s will respond to these latest protests. However, the company needs to take steps to address the concerns of its customers and employees if it is to regain public trust.
Can Byju’s App recapture its Magic?
Byju’s built its reputation on Byju’s app, a platform promising engaging and effective online learning courses. But with these financial burdens and internal turmoil, the question remains: Can the app keep its magic alive? Only time will tell.
The road ahead for Byju’s appears challenging. To regain investor confidence and win back its employees, the company needs to include transparency, address its financial woes, and demonstrate a clear roadmap for future growth. Whether Byju’s app can retain its allure in the face of these internal struggles remains to be seen.
This edTech giant, once hailed as a revolutionary force, is now at a crossroads. Can it rewrite its narrative and regain its sparkle, or will the cracks in its foundation only widen?