Byjus delaying the settlements with various entities even after raising so many funds?
Here’s the credit status of Byjus:
a) Think & Learn's liabilities increased nearly six times - from Rs 3,116 crore in FY21 to Rs 17,678 crore in FY22.
b) According to Teleperformance, Byju's agreed to pay ₹1.5 crore in the first trance, ₹2
crore in the second and ₹2.2 crore in the final tranche.
Operational creditors: They provide goods and services to a business
Financial creditors: They are those who lend money to the company.
Here’s the overall chart of which are the acquisitions done by Bujys and how much is the cost of acquisition each one had. Among them Akash Education having a good reputation and trust of many students. All the ed-tech sections (competitive exams, NISM exams, railway exams, etc.) are facing immense heat from small coaching startups & institutes so it’ll take time to see a large breakthrough from..
Recently Byjus was in the news for various reasons:
- Nonpayment to vendors like Oppo and other mobile companies (interest getting add-on)
- No salary for 3 months
- Placed a wrong brand ambassador who caught in a police case that harmed the brand. Plus, too much cash splurging on branding without utilising the organic medium.
There are various headlines against Byjus:
a) Once a unicorn Now the biggest loss-making co.
b) Byjus selling the founder’s share to stabilize the business
Critical Mistakes Byjus has made and is making:
A) Entering into a highly saturated market where there’s least space to grow unless you’ve unique expertise in training in a specific exam type
b) Hired too many employees in a short without predicting the impact of AI and Byjus WIZ (which decreased the major work of a faculty)
C) Expanded in too many sections (foundation, exams, kids learnings, exam tests, etc.) in the least time without focusing on one thing at a time and ignoring the competition level of established YouTube trainers
Which sections should Byjus eliminate?
a) Private and 1-on-1 coaching. Students already have a good relation with regional teachers and want to continue with his/her childhood teacher to understand better.
b) Tabltes & laptops: Though in rural areas it is acceptable, in urban areas where there’re already so many facilities the utilisation won’t be much
c) Too much test prep and workbooks: Students won’t pick the habit of self reading and making their own notes through the understood concepts (too much readymade materials affect the IQ level)
Byjus core expertise Is teaching and launching amazing math tools (here the students response is amazing)
As per the global peers the Indian ed-tech are getting way higher response with better execution skills. India is and will be very serious about education and India have got the best skills to deliver the content for students’ success (leveraging global expertise too).
This article will get updated when Byju's financials would shift from red to green or red to dark red in B/S.
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