Byju’s is a money-raising machine. The real question is – will …

Byju’s is a money-raising machine. The real question is – will it become a money-making machine ? ,

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    1. Indrajit Singh, there may not be an urgency now to make money from operations. Only time will tell if the acquisitions and the investments that they have been making help them make money.

  1. Flipkart, WhatsApp and many others were profitable?
    It’s all about pooling money. The more, the better. ?
    Not everyone want to see business profitable.
    All animals do the same things all the time.
    Diversity makes us beautiful species.

  2. They’ve touched INR 100 Crores a month in revenues (no GMV concept in their case) with the year’s target being INR 1400 Crores. The valuation seems high but these numbers are pretty good from any perspective.

    1. Dr Aniruddha Malpani, they have a yearly plan at 30k and five yearly plan of 80k for which they partner with NBFCs for interest free EMI options. The model is such that parents will end up taking 5 yr plan and no question of renewing.
      To achieve 1400 crore revenue, they need lesser than 2lakh paid students. I believe they can achieve that in India if their content is as good as what they pitch.

  3. In their quest to justify such astronomical valuations, many of these startups start getting ultra aggressive in their marketing, to push sales. Byju’s marketing is bordering on the offensive. We enquired on Byju website for a demo, and were visited by a Byju counsellor. We were clearly not expecting what happened next. The counsellor took some test spanning almost 1.5 hours (when they had said hardly 40-45 minutes) and tried to bully my kids into admitting that what they were being taught in school wasn’t good enough. My younger daughter was literally in tears. Since the test was dragging on and on, I had to cut him short and ask him about the pricing. As usual they had an offer which was valid for that very day only. We did not obviously fall for that. I don’t know if anyone else had similar experience with Byju. If any Byju guys or investors are reading this, a word of caution. Parents of school going children know what’s best for the latter, and your guys should not act smart or try to put us down, when trying to sell your product. I will never recommend Byju to anyone.

    1. Dr Aniruddha Malpani I meant doing well considering thier projection of 1400 Cr business (which means a large number of people are using their service for sure) and then they receiving additional funding means thier future prospects probably appears lucrative.
      Coming to students learning more, difficult to quantify.

  4. One of the few businesses which are great money making machines too Dr Malpani. With revenue of 1400 crores this year, if they were to slow down expenses on growth, they would be profitable today!

    1. Arun Dayanithi( AD)yes right…
      But some time is good to focus…
      We also have start,our goal is to give best services to clients and expands
      Both Happy
      Now a days, investor is for good office space and good salary…
      We believe in Best and Market Demand Product or Business Business..

  5. Speaking from personal experience, if the culture is not worked upon and experienced folks are not brought it at the cxo level, the high attrition rates will continue. Half the companies in Bangalore don’t entertain byjus employees looking for jobs as they have a starting salary of 10 lpa and a very limited skillset. Manipulating Glassdoor and hyping up revenue at the cost of a decent culture can only take someone so far.

  6. While they have been raising a lot of money. Their growth is not sustainable. There is not much of a barrier to entry for their competitors. A number of competitors have copied their courses and selling it using high pressure telemarketing. So I personally don’t see them becoming money making machines. They are more like a flash in the pan type companies. Not sustainable.

    1. It’s interesting to read comments when people disagree. It shows how little they think of opinions different from their own. Coca Cola has their own secret ingredient and yet they are in a buying spree to target the changing consumer taste. That’s why they bought Costa Coffee! And let’s before that. They will keep buying.
      5G is here and so is speed and children are interacting digitally. There is no denying that. The problem I see with Byju’s is 1. Their price points. It will stop them from entering Tire 2 and 3 cities and penetrating anything more than the upper middle class. 2. There is no substitute for human interaction face to face over time. The highest pay at their organization goes to the sales team. Tutors are disposable. That prevents face to face interactions building long term. User fatigue and cash crunch will eat into it.
      3. I agree Byju’s might have a secret sauce, but I am yet to be convinced of it.
      4. Just because they are raising money at a fast clip is not a sufficient condition for their success. There used to be a biotech company called Theranos. They raised unimaginable amount of money. Their founder became one of the youngest self made billionaires. Today they are worth nothing. Guess why?

    2. @Dr.aniruddha malpani To an extent true but down south kids spends more time on obile phones playing games and even many kids have personal phone or tab at home…So its here to stay and grow … Growth of offline vs online..online digital learning growth is skyrocketing .Its a sad truth though for kids

  7. World is travelling towards AI, Online and Virtual Dynamics…. But i’am still sceptical that in India were 80%+ people who still believe in Human to Human interaction; how Online learning will change … or in how much time it will change… their mindset. For Sure… They will Also burst Like Flipkart …the way they are spending against their revenue earning opportunities…..

    1. Dr Aniruddha Malpani yes its but hardly Indian startup dare to make things global. We have to show patience. I had seen several money making startups closing down because they were not able to compete when big people came.  Ola can make money with operating in town at small scale. will that excite anyone or will that make it a startup. Future group could have been profitable at 100cr sales but now they make money at $4Bn sales and that is big !! Similarly Naukri or many more…..Winning a mohhalla cricket and not daring to play international doesn’t make sense!! 

  8. I have seen Mr. Raghvendra from the days he use to give mega lectures in stadiums and serviced them when they started in testprep industry.
    BYJU’s were very professional from the start and I, learnt a lot dealing with them.
    They did had the concept years back and did tried with the resources available.
    Its only time when the valuation and value for investment shall realised taking into the potential the Indian education market in coming years

  9. Definitely, this is the foundation of Byju University like Jeo and might be a best educational university than any traditional models. Most of the Byju’s teaching locations are hardly seen now a days! Becoming money making institute and not any innovation teaching methodologies implemented to our future generations.

  10. Dr Aniruddha Malpani, this guy is clearly way ahead of anyone on this thread. I am amazed how so many intelligent and educated people reintepret his superior performance in order to justify their own personal limitations!

  11. 1. Just like the question Amazon and Flipkart face in India, will people continue to subscribe when deep discounts on courses go away?
    2. The model is not infinitely scalable. There will be a point where they will max out.
    3. The professional learning space is already saturated and I am not sure if they will be able to diversify.

  12. 3 factors that shows promising future of BYJU’s – 1- Indians over obsession with education, thereby higher educational spending, it’s 2nd biggest household expense after house rent. It’s never going to end. 2- High repeat rate, you buy 1st std, you buy 2nd standard and so on. 3 – Way superior content then any other educator in the country, way superior, I wish I could become a Kid Again. 😀 4 – Deep war chest, where other content providers are struggling with piracy/content theft, BYJU’s have all the money in the world to fight that legally and technically.
    If BYJU’s crack/aim to crack physical/brick-mortar centers, there is no stopping for them, franchise led model with synergy between offline-online learning. I guess O2O will be the theme for next decade. (I posted 4 points but I said 3 earlier, I believe in under promise and over delivery 🙂 

  13. It’s making – for the founder. And the early investors. Most of the time, most, of, the, time – VC investing is a game of greater fools. Wily founders, who manage to get their valuation very high quickly, make good money simply in cash compensation itself. While their comps may look small, as compared to the large valuation numbers, in real life, it’d have been very difficult to take that kind of money home – as a ‘businessman’ or an employed executive.
    For the VC investors, including the angels, it is another game. For them, the trick is not to be able to ultimate value of the business, but to be able to bet on its buzz effect in 2-5 years’ time, so that they get a greater fool. Of course nobody, including the original poster of this thread, is going to own up to that.

  14. We all love to comment and pass judgement on various enterprises….but, Kudos to the Founders, Investors who are transforming the way businesses are being done….Building businesses is Now NOT proprietary to the Rich n Famous…. now anyone can dare, dream and live the dream. Bravo.

  15. Sir the question you have asked in golden dollar which time will answer not only for byjus but for many companies which have been raising funds with bleak or negative bottom line, as these days every one is interested with top lines

  16. Very good question! Why aren’t startup’s today looking sustainably, why is the focus only on raising money.
    It is important to raise, at the right time to grow, also more important is right amounts. Many have gone over board and fallen flat.

  17. Money making – they already are. There is no other competitor even close to it, try clubbing the rev of all of them at the same time. Profit can’t be predicted as there is no data available but in edtech changes are higher. Learning outcomes – that’s completely subjective. Each one can have their view but the truth prevails – a inquisitive soul can learn from anywhere.
    And lets not put too pressure of learning outcomes on just one company. The learning outcomes has there grassroots in the education system, then at home and then to any 3rd party player. So expecting it to change the paradigm with given that priority is asking for too much.

    1. Dr Aniruddha Malpani I understand your concern. They right now are taking away all the money from the pie. But for a change it has spiced up the generally low profile education sector. Unless they show a good exit or return the sentiments will die down even further.

  18. No it won’t soon.
    There are many startups working in shadow on different technologies which will soon change the face of education.
    So I hope next 2 years, the market share will get divided in many. And may be Byju’s investors don’t even know what else is done or can be done.

    1. Valuation and Profitability are 2 different types of businesses of course. Off-course I think investors are smart enough to look at profitability more than valuation. Otherwise, the last owner in the valuation transfer chain will lose all money once bubble bursts. And definitely there are many people keep roaming around with the needle in hand to burst the Bubble. It is only a matter of time if they don’t bring further innovation in their offerings.

  19. Dr sahab, looks like you missed the bus. Not a single person willing to validate how it benefits students at the end of the day on this chain of comment. Bcoz end customer are too young to comment on LinkedIn. Based on your post in the past & experience, I really admire you for the skills, knowledge and a gem you are bcoz of experience you share on this platform
    based on your past comment, I think they deserve it. Coz all the points you raised to be a successful business, they have it. Point me out if I am wrong, please.

  20. Well, the concept of Byju is novel and would take time to settle in the minds of users / people around. If they keep close eye on how their product evolve, surely it will make much more sense.
    I personally relate this with paytm, utility and acceptability of which was questionable during initial years, but today it’s like indispensable.
    On revenue part, INR 100 cr pm look impressive though, sustainability is more important.

  21. The move to a digital education platform has been lucrative for the company. In June, Byju’s said that it touched ₹100 crore in monthly revenue and raised its annual revenue target for this year to ₹ 1,400 crore. The company claims it is one of the few Indian unicorns that has become profitable.This is what the article says

  22. Getting regular investment is also a good sign for investors as it increases the value of their equity. Flipkart did the same, I worked with them, I have understood that they haven’t taken their work seriously and the intention of the equity holders was just to sell their equity so they can have a good amount of money in return. Making losses by not to improve the quality and expanding a business is nothing but to increase the valuation so some big groups can take over and one can have billion in the pocket.
    One can have a great platform to raise money, take a sip of investments, increase the valuation by expanding business and sell it to the big groups who can have their own way and intention to take over it.

  23. I don’t understand the logic of such heavy funding at times for the business entities that barely innovates or much different in its business model. Guess, some entrepreneurs are lucky. Let’s see if the honeymoon lasts long. However, best wishes to the Byju leadership and its investors.

  24. It’s a transformation path for “Teaching as a service” like flipkart to “retail as a service”
    As we are having more and more “educated, certified and less knowledgeable teachers”z Byjus model will succeed but needs to stand for at least 8 to 9 years.

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