Today, we have an intriguing story to share - the rise and fall of a prominent EdTech company, BYJU'S. Once considered an Indian unicorn, how did it all go wrong? Let's find out.
What does a unicorn in India mean?
Unicorn is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion. Byju's is an Indian multinational educational technology company, headquartered in Bangalore. It was founded in 2011 by Byju Raveendran and his wife Divya Gokulnath. It was back in 2018 when BYJU's turned into a unicorn, becoming the first Indian ed-tech company to join the prestigious unicorn club of Indian startups.
BYJU'S quickly emerged as a game-changer in the EdTech industry because of its innovative approach to learning, interactive content, and personalized teaching methods, but on the balance sheet, it remained a loss-making company. But that’s nothing new. Most of the unicorns are loss-making. Investors value them based on future profitability and returns. What went wrong with Byju’s is that the majority of its investors and board members think that the company is not in good hands. They are not satisfied with how Byju running its business. As a result, BYJUs is confronting the crisis of its lifetime with auditor Deloitte & several board members resigning and funding drying up. An investment firm BlackRock cut BYJUs valuation to $ 8.4 billion from $ 22 billion.
From super expensive marketing strategies to unethical practices Here are 3 mistakes that led BYJUs to failure.
1 июн 2024
