Byjus business model revolve around Edtech educational technology, distance education & m-learning services. Ranked the world most valuable education technology company in March 2019, Byju’s learning app is associated with the brands Think & Learn Private Ltd.
We all know that education is one of the inescapable need of man. It puts people on the path of progress & help them achieve the goal they want in their lives. There are several way to learn & teach. To make the teaching learning process more effective, there are some tools & applications that provide online help for studies.
Byjus, as one of the best online educational companies, has taken the initiative to incorporate advances in the educational systems so that student can learn & master lessons and concept in a personalized way.
In this post, we will delve into the world of Byju’s business model & understand how they have revolutionized online education technology.
Beginning of Byjus
Raveendran Byju is a magician from Azhikode, a coastal town in Kerala, India. He first worked as a designer at a UK based company. He had his first idea to educate teenager from standards 11 and 12. In 2006, he first launched this valuable education technology called Byjus. The goal was to reinvent the way student learned & transforms learning into a more entertaining process.
Establishment of Byju’s Business Model
Byjus continued to teach student, and then came up with a brilliant new idea to deliver his lectures & other teaching material online. Online teaching was the most convenient way for Byjus to make his services available to those in need.
The app was first launched in 2015. It garnered a massive response from student with over 5.5 millions download in just one year. Children with a huge demand for online coaching saw BYJU’S as the solution to their problems.
The subscription renewal rate is as high as 90%. Furthermore, it has been observed through the statistic that the subscribed student spend more than an hour on the applications every day.
Byju’s app became the most valuable edtech company of all times with a net worth of $5.4 billion.
Goals and Vision of Raveendran Byju
Mr. Raveendran Byju was always clear about what he wanted to achieve in the field of teaching & educations. He wanted to make the process more holistic by sharing his experiences, connecting with student, and helping them practice & apply his concept.
There were gaps and gaps in the education system & affected student learning. Therefore, his main objective was to eliminate these gaps & to fill the gaps with more education and improved teaching materials. (Byjus business model)
Byju’s platforms is as unbiased as possible. This app is not just focused on bright & brilliant student. Instead, try to motivate those who are not inclined toward studies. Byju has always strived to improve the conceptual understanding of subject by teaching student from the basics.
The didactic material provided aim to eliminate the monotonous schedule of school teaching. The same practice as live teaching is often tedious for student studying online.
They are not just textual chapter; there are some interesting tests, games & exercises. These reading material help keep student focused and interested without compromising the learning aspect.
Challenges for Byju’s business model
The early day of business were not too easy. Some factor posed a threat to Byju’s prosperity.
In 2015, there were many application and platform running on the same domain. They were Byju’s competitors. Byju has always been confident in the quality of service provided on its platforms & has never hesitated to fight back.
But Raveendran Byju knew that his materials and presentation had the potential to affect million & catch their attention. He also launched a freemium based models in which some content related to the basics was made available to everyone for free.
This made the student understand the quality of teaching provided by Byju. (Byjus business model)
As a result, Byju started enrolling more student for its premium teaching services. This helped them obtain more fund to expand their operations internationally.
Reasons for the success of Byju’s business model
Byjus success can be attributed to several factor, such as the quality of the teaching materials & the way it is presented. But the main element that has driven Byju’s success is the connection he build with his student.
For the students, Byju’s was more than a platforms to study. The student viewed Byju as their most enjoyable method of learning and growing. Student have developed a liking for video lectures on this app.
Byju also produced educational content in different engaging format, such as quizzes, live action, and animation based learning.
Byju understood the need to create videos in different languages to expand their consumer base in India. They also wanted more student to be able to use their platform to gain knowledge. Currently, the app offers videos in Hindi and English. However, they are also working on creating content in regional language. (Byjus business model)
The application provide customization of the teaching materials for each students. It gives them a specific pattern of training, which is unique to them. It take the aptitude and comprehension power detail of the student & then selects the content for that student accordingly.
This type of learning has helped student prepare for their exam & help students give themselves a deep review.
How does Byju make money
Byjus business model can be called freemium. It mean that some contents is available for free, while advanced content require a subscription. This method attract many student. Once they know how good the app & the content are, they automatically feel the need to subscribe to paid services.
A freemium based business model is similar to the concept of Sample Sales. Student can watch a sample video or a basic video. If they like the video, they can buy all the video in bulk, that is, a subscription.
In the fiscal year of 2018, Byjus earned Rs. Four hundred & ninety million rupees, and in the fiscal year of 2019, he earned Rs. One thousand three hundred and forty one crores as income. (Byjus business model)
Due to the coronavirus, the entire educational systems has changed its process online.
Most of the companies that start to launch their Education technology platforms now face the monopoly of Byjus Classes. In India, Byju has become the most sought after platforms by students during this pandemic. This has increased Byju’s growths estimates to over 200% in 2020.
Byjus revenue structure is based primarily on subscription fees. However, Byju has launched new product such as Byju online tutoring and other learning program to drive revenue growths this year.