How Byju’s Rose to Become the Largest Learning Platform
Byju’s has revolutionized the world of education by offering comprehensive, engaging, and interactive learning solutions. But how did this start-up evolve from a niche online class platform to becoming the largest learning platform in the world?
Initial Strategy and Growth
The journey began with Ravindran, the founder of Byju’s, who started tutoring IIT and BTech students. Recognizing the potential to reach a broader audience, Ravindran decided to expand his classes to other venues, including seminars and halls. This strategic move allowed him to capture a larger market and increase his earnings.
Content Creation and Distribution
To enhance reach and accessibility, Ravindran began capturing and recording his classes. He then shared these recordings with students who missed live sessions. By compiling all the topics in one easy-to-access PDF, he reduced the workload for both teachers and students, enabling a more efficient learning process. Creating these PDFs required minimal initial expense, with costs ranging from 1-2 lakh rupees for the first set of recordings.
Launch of the App and Smart Devices
Moving towards digital platforms, Ravindran developed the Byju’s app, which offered a vast library of classes and topic-specific PDFs. He strategically chose to sell these classes via smart tablets, which, when purchased in bulk, cost 3000-4000 rupees. This decision provided a cost-effective and accessible learning solution for a wide range of students.
Business Model and Profit Margins
Byju’s subscription model proves to be highly profitable. Let's break down the economics:
Subscription Details
The details of the subscription plans illustrate the excellent return on investment for Byju’s:
1-Year Subscription:
Cost of subscription: Rs 16,000 Cost of tablet: Rs 7,000 Total: Rs 23,0002-Year Subscription:
Cost of subscription: Rs 16,000 Rs 12,000 Cost of tablet: Rs 7,000 Total: Rs 35,000Breakdown of Costs
The tablet cost serves as a one-time investment, with individual tablets priced at 2000-3000 rupees. However, when purchased in bulk, the cost drops to around 3000-4000 rupees. Additionally, the SD card for the program is sold for 300 rupees, accounting for a small percentage of the monthly revenue. These costs align with the detailed economics of the subscription model and help maintain a steady income stream.
Revenue Generation and Partnerships
Byju’s has a robust expansion strategy, backed by significant promotion expenditure. As of the latest figures, the company spends approximately 30–40 crore (Rs 300-400 million) per quarter on promotions. This often amounts to over 500 crore (Rs 5 billion) annually. Partnering with financial institutions like IIFL, Kodak, and Axis, Byju’s allows students to apply for loans using only their PAN card and KYC details. For customers with good CIBIL scores, getting a loan up to 1 lakh rupees is straightforward, facilitating easy access to the platform.
Customer Experience and Refund Policy
While the service is user-friendly, the customer experience is marred by certain limitations. For instance, the platform offers mentor support only after one month of subscription, which can frustrate users who seek immediate assistance. Additionally, refund policies are non-existent, adding to user dissatisfaction. These factors highlight areas where Byju’s could improve to enhance overall customer satisfaction.
Conclusion
From its humble beginnings as a niche tutoring service to becoming a global leader in online education, Byju’s has achieved remarkable success. Through strategic content creation, robust promotional efforts, and a well-designed subscription model, the company continues to grow and innovate. While challenges remain, Byju’s impressive trajectory underscores its position as a trailblazer in the educational technology sector.