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#Management

[1/2] The Learning Trap: How Byju’s Took Indian Edtech for a Ride (Category Management)

#Management #Edu #SelfDevelopment #Leadership #Processes

I read this book, published in autumn 2023, with great interest. It details the dealings of Indian edtech giant BYJU’S, once valued at $22 billion and now effectively worthless. The title contains a neat pun lost in Russian translation: its main product was “The Learning App,” which the author turns into “The Learning Trap.” Journalist Pradip K. Saha questioned the business model even when the company was riding high, then turned his investigation into a gripping book when its problems emerged.

Saha describes aggressive marketing, corporate failures and financial misconduct under founder Byju Raveendran, whose empire collapsed amid fraud allegations, an unsustainable business model and a toxic culture. By 2025, BYJU’S faced bankruptcy proceedings, a 95% loss of value and lawsuits in India and the United States. The episode marked a turning point for the sector, bringing investor scepticism, tighter regulatory scrutiny and a reassessment of hypergrowth.

The main elements of the story:

1) BYJU’S began with its founder’s offline tutoring in Kerala, becoming a digital platform by 2015. It exploited gaps in India’s education system and positioned itself as a tool for “average students.” Pandemic demand accelerated growth. Between 2020 and 2022 it acquired competitors including Aakash Educational Services for $1 billion, Epic! for $500 million and Great Learning for $600 million.

2) Its strategy relied on fear of missing out on a good education. The book describes:

  • Predatory marketing: alarming parents while promising guaranteed results and using celebrities such as Shah Rukh Khan and Lionel Messi.
  • Manipulated metrics: inflating subscriptions through employees’ purchases followed by quick refunds.
  • A personality cult: Raveendran’s charisma concealed operational problems, with speeches compared to religious sermons.

3) Professional management and financial oversight were missing.

  • Irresponsible leadership: Raveendran ignored the board and approved deals unilaterally, including a $1.2 billion loan in 2021.
  • Creative accounting: delayed financial-year 2022 reporting concealed an 81% increase in losses. Audited statements were delayed for years, and auditors publicly withdrew.
  • A toxic culture: unrealistic sales targets led to mass departures and mental health problems among employees.

The account continues in the next post.

#Edu #SelfDevelopment #Management #Leadership #Processes