The Downward Trajectory of Byju`s: Is Revival Possible?
| Case Code: LDEN213 Case Length: 13 Pages Period: 2011-2023 Pub Date: 2024 Teaching Note: Available |
Price: Rs.400 Organization : Byju’s Industry :FMCG Countries : India Themes: Entrepreneurship, EdTech, Strategy Implementation,Business Failure |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
… And Growth
Byju’s started exploring more avenues for growth. It found several opportunities in teaching in different Indian languages, learning beyond K-12, coding, computer classes, and also overseas markets. On the growth plans, Divya Gokulnath,
The Other Side…
Indications that Byju’s might be facing challenges emerged when it did not release the annual financials for the year ending March 2021, even till June, and delayed it further. By June 2022, signs of trouble were more evident as Byju’s deferred payment of US$ 180 million to Blackstone..
Students and Employees’ Woes
The staff at Byju’s, which witnessed several of their colleagues being fired, feared for their jobs. When a newspaper interviewed a few staff members, most said that they work more than 12 hours a day, six days a week. They said they sometimes worked on Sundays when their managers asked them to for fear of losing their jobs..
Owners’ Stake Dilution
Since 2015, the promoters of Byju’s – Raveendran, Gokulnath, and Riju have sold shares worth US$ 408 million in 40 secondary market transactions. Raveendran sold 29,306 shares (US$ 3.28 million)..
Term Loan B
One of the major setbacks faced by Byju’s was Term Loan B. In late 2021, Byju’s wanted to take a term loan of US$ 500 million..
More Troubles
Byju’s inability to pay loans on time and the fact that some of the investors did not give the money promised raised several red flags about the finances..
Raveendran’s Next Course
In January 2023, Raveendran said that Byju’s would change its sales strategy. As a part of the new strategy, salespeople..
Exhibits
Exhibit I: Byju’s– Funding
Exhibit II: Byju’s Acquisitions
Exhibit III: Byju’s – Expenses
Exhibit IV: Byju’s Shareholding as of 2022
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