Byju’s Journey from Small Classroom Business to $3000 Million Edutech Empire (Updated 2021)

11 min readJan 4, 2018

Who would have thought that it would take a pandemic of the proportion of Covid-19 to take education online in the manner it happened in 2020? In the past decade companies like BYJU’s constantly tried to push the boundaries of conventional education and were preaching new and innovative ways to learning. Though since its inception in 2011, BYJU’s made numerous remarkable feat including numerous acquisitions and foreign investments, it was the year 2020 which turned the company around in massive proportions. If earlier it has made a stamping mark in online education in the K-12 segment, it was during the lockdown period that it added over 25 million new students.

As the world’s largest edtech company, BYJU’s has been attracting students from LKG to Class 12 since 2015. It is also the go-to learning platform for JEE, NEET, IAS, Banking Exams aspirants who get access to improvised learning material in the form of engaging videos. But in 2020, it got its real boost as schools and colleges closed and students lost their regular class sessions. BYJU’s even gave free access to its learning app for all to make education easy and simple.

In March 2020 alone it added 6 million new students on the learning app and by April it rose to 7.5 million. In the first two months of lockdown over 13.5 million new students registered on the app. Currently, there are over 64+ million registered users on BYJU’s Learning App. Apart from being very popular in India, the app is also being used in over 170 countries. An average student now spends about 71 minutes on the app daily.

Since BYJU’s was founded in 2011 by Byju Raveendran, it has consistently been capturing the edtech market so much so that today it is the largest company in this sector. It started as an online coaching center for CAT aspirants but soon moved to become the nodal point for all sorts of learning. The personalized app which was launched in 2015 furthered the growth of the company with its innovative and informative content and learning videos. Interactive simulations and hacks have helped millions of students memorize and perform better. The idea of this e-learning venture came to the founder’s mind due to the rising demand for easily accessible and innovative educational materials.

BYJU’s Timeline and Lesser Known Facts

After being established in 2011, BYJU’s started its operations with specialization in the K-12 segment and formed a panel of experts to create e-learning content.
In 2014, BYJU introduced its first-ever learning program on tablets for students from grades 8–12.
In 2015, BYJU’s introduced its first-ever mobile application which was downloaded by 2 million users in just three months
After its launch in 2015, BYJU’s app has been downloaded over 64+ million times.
Till the end of 2020, students spent at least 71 minutes daily on the app.
In March and April of 2020, the app was downloaded 13.5 million times
In 2018, BYJU’s launched the Parent Connect App that allowed parents to keep a tab on their wards’ progress on the app.
After the initial success, in 2017 BYJU’s added a syllabus for 4th and 5th graders which then added 8 million new subscribers.
Currently course material is available in English and Hindi. The company has plans to expand to regional languages as well
In 2017, BYJU’s introduced the Maths app for kids to help them improve their caliber in maths
In January 2020, BYJU’s launched online private tuition classes to enable students to have scheduled personal classes with reputed teachers
In March 2017, a case study about Byju’s entered Harvard Business School. The study was called BYJU’s The Learning App, written by Rachna Tahilyani and John Jong-Hyun Kim. This case study focuses on the formation of the app and the difference it has made in along with the use of the app for students across the globe.
In July 2019, BYJU’S won the sponsorship rights for the Indian cricket team jersey.

Products and services

The main product of the company is the app which is called BYJU’S-The Learning App. Available for download on iOS and Android phones, the app was introduced in 2015. Apart from classes 4–12, this app is used by aspirants attempting exams namely IAS, CAT, IIT-JEE, GRE, and GMAT.

The app comprises videos in which maths and science concepts are explained. This is done by utilizing animations and illustrations. The app is extensively used and praised but a few users have also reported a lack of detailed information in a few areas and the absence of interactive mediums in the lecture. The app has a retention rate of 80–90% of students annually.

How to use Byju’s App

Download app on iOS and Android platforms
The app has a neat classification of classes 6–10 and 11–12. Groups for exams namely CAT, GMAT, GRE, CBSE, IAS, JEE, and MED have also been created.
You will have to fill in details such as Name, Number, City, and E-Mail after which you will receive a 4-digit authentication code.
You can then navigate to the learning videos meant for each class or category.
The videos utilize interesting animations and engaging content to ensure the student understands the concept in a fun way!

6. To view more videos, you will have to purchase subscription plans which begin at Rs 199 and go as high as 12000 for annual subscriptions depending on the class and subjects.

Acquisitions

Valued at $670, million, BYJU’s has made a single acquisition by taking over TutorVista’s 70% stake hold. This move was made with the intention to venture into the much popular tutorial market in the USA. The company was previously bought by Pearson in 2013 for $213 million. This acquisition will strengthen BYJU’S ties Internationally as well as TutorVista has 2000 teachers from various countries such as China, Australia, UK, USA and Asia due to which the company has successfully delivered 5 million videos to students.

Edurite which was acquired by the TutorVista in 2007 is also a part of this acquisition. The latter company is well known for its learning CDs which promotes cognitive learning. The company specializes in online courses for CBSE and State board.

After Tutor Vista, Byju’s acquired Bangalore based career guidance and academic building company Vidyartha for 50 crores. This company was established by Priya Mohan in 2011 and it worked as a platform for guiding students by collaborating with 2000 schools. It has also tie-up with CBSE to create aptitude tests. The company has raised $155 million in funding so far.

In the first month of 2019, BYJU’s again made it to the headlines by acquiring US-based Osmo, a maker of educational games for children aged between 3 and 8 years old for $120 million.

By June BYJU’s launched the Early Learn App for students between Class 1 and 3. For this app, the company went into a partnership with Disney which allowed BYJU’s to use cartoon characters to teach young kids. This was the first such partnership in the education space.

In midst of the Covid-19 pandemic in August 2020, BYJU’S acquired Whitehat Jr., an online coding school for young kids for $300 million.

Within the next six months, BYJU’S acquired Scholr, a Mumbai-based doubt clearing platform for a reported amount of about INR 15–20 crores.

According to reports published in early 2021, BYJU’S has signed a multi-dollar deal to acquire test prep leader Akash Educational Services Limited for $1 billion. This is touted to be the largest edtech acquisition in the world and should be completed anytime soon.

Founder

The founder of this venture is BYJU Raveendran. Born to a school teacher, BYJU has extensive experience in working as a service engineer for shipping companies. Raveendran started helping his friends in preparing for entrance tests like CAT during his free time. He started this Educational technology firm under the tagline “Fall in Love with Learning”. He developed his business with the aim of helping CAT Aspirants in scoring well in their exams by unraveling the concept of each question.

Raveendran has stated that he derived the idea of starting the business when his friends approached him to help them in cracking their CAT exam has he had many hacks for the same. Apart from helping his friends, he also casually took the exam to see how the experience was. He scored full marks and was approached by IIMs.

When the results were announced, Raveendran’s friends had scored 100 percentiles as well. Taking inspiration from this, BYJU began workshops on the weekends. He also booked auditoriums with seating capacity of 1200 to conduct classes and by the 6th week, the place was packed to its fullest capacity. This was a new beginning for BYJU Raveendran!

Board of Directors

Members on Byju’s board currently comprise of the following members: –

Byju Raveendran: He is the founder of the company and he draws an annual gross salary of Rs 68,52,040
Divya Gokulnath: Byju Raveendran’s wife and a director at Byju’s, she draws 31 lakhs annually.
Riju Raveendran: Brother of Byju, he is also a director of the company and he draws Rs 42,12,706

Apart from the above-mentioned directors, Byju’s has Ganapathyagraharam Venkataraman Ravishankar from Sequoia Capital, Vivian Wu from Chan Zuckerberg Initiative, and Anandamoy Roychowdhary, as a technical advisor on board. These people have been roped in lieu of investments from their respective companies in Byju’s.

Infrastructure

The headquarters of BYJU’s is located at Bannerghatta Main Road, Bangalore. As of 2020, the unicorn company has 9000 employees. Apart from Bangalore, the e-learning company has centres in Chennai, NCR, New Delhi and UAE. Byju’s also has franchises in many states cities such as Pune, Chandigarh, Surat, Jalandhar, Amritsar, Thrissur, Thiruvananthapuram and Kochi.

Investors and Funding Stage

As BYJU’s grew as a company, investors multiplied as well. The company has been associated with some renowned companies who have backed the e-learning initiative. It is well known as a top grosser of the e-learning industry in India where attracting foreign investors is concerned. By September 2020, the edutech startup company added BlackRock, Sands Capital and Alkeon Capital as new investors who added $500 million to the company’s balance sheet. Currently, the company has 24 investors.

2011: Aarin Capital invested $9,000,000 in the company

2013: Byju’s received its second round of funding yet again from Aarin Capital which was worth $25,000,000.

March 2016: The company received funding from Sequoia Capital and Belgian firm Sofinaworth $75 million. This move was etched in the history of EdTech as it is the biggest investment ever received by any e-learning company in India

September 2016: BYJU’s biggest triumph was when the company pocketed 50 million dollars from Chan Zuckerberg initiative in 2016. This organization has been formed by the founder of Facebook Mark Zuckerberg and his wife Priscilla Chan.

December 2016: In December 2016, IFC invested $15 million in Byju’s. This company is a part of the World Bank Group.

March 2017: Byju’s (Think and Learn Pvt. Ltd) has also raised $30 million from Brussels-based company Verlinvest. Established in 1995, this company manages €1.4 billion assets.

August 2017: Continuing its fundraising spree, Byju’s also managed to rake in $40 million investment from Tencent which a Chinese internet conglomerate. The company has also invested in other big names including Practo and Flipkart.

In March 2018, BYJU’S was declared as a unicorn company

July, 2019, Qatar Investment Authoroty invested $150m

In June 2020 Mary Meeker’s Bond Capital invested in the company. Bond also poured in $23 m to invest in the company. This made BYJU’S a decacorn with US$10.5 billion in valuations

By August 2020, $122 million came from DST Global

In September 2020, General AtlanticSilver Lake PartnersTiger Global ManagementOwl Ventures invested $500 m.

Byju’s Revenue Growth

BYJU’s has exhibited substantial growth as far as revenue is concerned. The company started with a meager amount of INR 2 lakhs and it has reached 120 crores today. Revenue earned by the company through all these years is as follows: –

FY 2012- ₹4 crore
FY 2013- ₹12 crore
FY 2014- ₹45 crore
FY 2015 — ₹110 crore
FY 2016 — ₹240 crore
FY 2017- ₹490 cr
FY 2018 — ₹490 crore
FY 2019 — ₹200 crore monthly revenue
FY 2020 — ₹2,800 crore

BYJU’s Business Model- How Does the Company Make Money?

BYJU’s follows a freemium business model. For those who are not aware of this term, this model is a pricing strategy that offers a product for free with extra money being charged for utilizing features of the product.

On average, BYJU’s annual fee for the k-12 app is Rs 10,000. This app forms a major part of the company’s revenue.
However, there are other packages for offline coaching as well. Approximately 80000 or more is charged for a four-subject package. The online course is included in the offline model.
According to BYJU, videos are the biggest source of their advancement. These videos help them in advancing towards their goal thereby contributing to successful conversions. The videos are free for the first 15 days after which the user has to pay in order to continue services.
The impact of their success is gauged by two measures namely engaging content and retention. For instance, when a student spends a substantial amount of time on a particular video, the value created will make a parent opt for the subscription. The second measure comes into effect when the company is able to retain their app user year after year thereby leading to a renewal of the subscription.
According to BYJU, the secret behind their success is their strong business model which was enhanced consistently according to the changing trends.
The company reportedly utilizes 20% of its revenues for marketing campaigns which gives the company a substantial ROI. This is a good amount spent on advertising when compared to many companies who just spend 5% on their publicity.

Future Plans

There seems to be no stopping this edutech start-up from Bangalore which in just a decade has become the first unicorn company in its sector. It is also one of the vastly invested companies in the world with Facebook owners Zuckerberg and Chan having a share. The recently reported acquisition of Akash Educational Services Limited, the biggest brick and mortar tutorial in the country just goes to show how fast this company is moving. The company is continuously breaking boundaries in education and helping students understand concepts as they learn. The fact that BYJU’s is heralded by teachers points towards the fact that their priority is always students and their welfare.

The company is continuously striving to facilitate better learning which has made it so successful among students, parents, and also investors. The pandemic has further sealed the future of the company and has proven that they are moving in the right direction. Students have had to migrate to online classes far more quickly than anticipated. The company is poised to make online learning and self-learning more accessible to all Indians and when it realizes its goals, it will have teaching modules in various regional languages too. In the future, the company is targeting reaching students in far-flung areas whose education has been severely curtailed due to the closure of schools. The founder CEO of the company believes that the pandemic has helped this edutech company to make quality education accessible to all.