Byju's: How the Business and Revenue Model Works?

Education is the most powerful weapon which you can use to change the world, said by Nelson Mandela bring enthusiasm to the lives of the people in the field of learning. Education is the most crucial weapon which empowers and spreads learning to a wide extent. Learning never exhausts the mind, said by Leonardo Da Vinci, motivates people to not stop themselves from learning, as we can learn at any movement of our age.

Many people lost their access to education due to the wrath of a pandemic, but these online classes are intended for students to continue their academics even during the pandemic and get personalized guidance for the same.

With the aim to educate the people with a new learning platform, Byju's with its tagline says - Fall in love with learning. It started its journey in 2011, in Banglore, and came up in front of the audience, in the form of educational technology platform, which is an online tutoring and coaching firm and runs on a freemium model. Byju's got its name from the first name of its founder. Its primary company is Think and Learn Pvt Ltd.

The company aims to serve the people with coaching through online video lectures for the students of class 1 to 12, and also for people who prepare themselves for competitive exams like IIT - JEE, NEET, CAT, and others.

It has associated itself with a learning app, which was launched in 2015, bringing remarkable progress to the platform. It marks its attribute in getting aligned with millions of subscribers. It helps many students to learn by associating them with the teachers, personalized learning, and theoretical learning.

About Founder

Byju Raveendran who is the founder and CEO of Byju's Classes, with a step to help people learn and associate them with a new education platform, got inspired by the teaching and started the learning application for the people.

Initially, he only used to teach the MBA students, with free of cost. Later, more number of students approached him to learn, which inspired him to come up with a classroom. Gradually, he started an online video-based learning program for CAT, and also included technology in the field of teaching, in the 2009.

He further came up with the launch of BYJU's – The Learning App, in the year 2015. It shows its attribute of coaching, which is for CAT, the National Eligibility and Entrance Test (NEET), the civil services examination, the Graduate Management Admission Test (GMAT), the Joint Entrance Examination (JEE), and the Graduate Record Examination (GRE).

Vision, Mission, and Goal

It has come up with a vision of making quality content and helps students to approach the teachers anywhere and builds a community of active self-learners.

Its mission states to create a new age, global learning tools is seated at the cross-section of technology, interactive content, and personalized learning methodologies.

Its primary goal is to build a fulfill a gap between the Indian Education System, which will help the students to fall in love with what they learn. It will make the students more engaged with the study. The platform delivers the content in various forms - quizzes, exercises, visualizations, and much more than just theoretical knowledge.

It shows its attribute to be unbiased by focusing on all the students, and not only those who are focused and interested with their learning and studies. It motivates the students to learn with enthusiasm

It firstly expanded and spread its hands in the international platform with the launch of a live online one-on-one learning platform, Byju's Future School, in May 2021, and has a focus on global expansion and has aggressive plans for the US market.

Value Propositions

This marks their importance in making their products look attractive to the customers, which will attract the interest of the people in the easiest way. It helps the customers to truly understand the value of the products and services offered by the company.

It also helps the ideal customers to show the way that how the services benefit them. Access to good quality education, bringing quality teachers to every student, video delivery model, engaging content, and retention mark their importance in being the value propositions of BYJU's.

Business Model

Byju's is associated with a freemium business model, and it offers customers both complimentary and paid premium services. The company asks the students to share their details on its application or website and also offers them a free trial for 15 days. After the free trial is over, then the students need to purchase to again get associated with the online learning. The platform mentors the subscribers and provides feedback to their parents.

The students are asked to provide all their personal details for the registration. Later the process is followed by a trial of 15 days, which helps them to build trust with the services. Once this process is followed, then the students are aligned on the most advanced levels of learning.

At the first stage, the students are asked to attend the classes they have enrolled in. They are carried with the multiple tests along with the personalized feedback. Classroom sessions are conducted by IIT/IIM graduates at the center near them at the third stage.

It ultimately marks its importance in one-to-one mentoring & doubt clearing by experts is done at the fourth stage, and at the fifth stage in-depth analysis and real-time feedback are given to the parents. At the sixth stage, a complete revision of the whole content is done again in order to gain a better understanding.

B2C Business Model

Its business model works with business-to-consumer (B2C)

Future Plans

The platform has shown its attribute in occupying a wide place for itself in the market with its teaching and educating the candidates, which is like an investment for the future, that would bring the prosperity of knowledge to the candidates in hundredfold, shaping their life like a Diamond. It is now associated with greater goals, challenges, and team support, which motivates it to escalate its hands and approach the US, UK, South Africa, and other markets as well.

Key Activities

Goals are easy to achieve when we have tenacity with it, which makes us dedicated and enthusiastic. Similarly, the key activities of the company lead it towards its goals with ease.

Byju's comes with these key activities which keep it motivated and enthusiastic. Its key activities include platform developments, data center operations management, IT infrastructure operations, and managing the learning community.

Key Resources

The business includes the key resources which mark their attribute as being the most important assets required to make a business model work. These are the resources that allow an enterprise to create and offer a Value Proposition, reach markets, maintain its reputation to a wide range. These include the technology infrastructure, interactive graphics technology, lecturers, servers, IT infrastructure that acts as the most crucial assets that are needed to make a business model work.

Customer Relationships

Customer Relationships shows their importance in making a bridge between the company and the experience of the customers. It prioritizes the experience of the consumer, who could receive value from the interactions with the team. Its main benefit is helping to connect with the customers on a much more personal level. When the company gets connected with the interest of the target audience deeply, then they understand their requirements, resolve their problems conveniently. The platform gets connected with its customer relationships through a mobile app, online virtual classes, direct meetings, and calls, which keeps them engaged with the platform.

Customer Segments

The company deals with the customers segments that divide the base of the customers into groups of individuals that include the students, parents, teachers, and other competitive exams. It marks its importance in being the crucial marketing tool as it helps a business to better understand its target audience. It further can help to optimize the marketing strategies, maximize the value of the business, and also improvise their experience and brings satisfaction to them.

Channels

These marks their importance in being the source by which the company provides its service to the customers. It includes various social media platforms like YouTube, Facebook page, web, and mobile apps. These platforms are considered as the crucial means of communication in the market that deals with posting the ads in the stories, just because most of the people watch the stories ads.

This provides a huge opportunity for the platform to advertise their products into the market digitally without any hurdle. This helps to make the platform get recognized more easily. This marks its importance by being the most relevant platform, where there is a gathering of a large number of people. These are the most convenient form of advertising the services because these include video, application, display, search ads, and a wide variety of options, which makes it unique in every manner.

The platform gets its first source of income through the app. It offers a free trial of 15 days to the students and later asks them to purchase the courses to continue their studies. The app aligns the students with a variety of test series, courses, etc. which compels people to make the purchase.

In the second stage, it provides the students with the electronic tablets which consist the videos, tests, practice questions, quizzes, etc. pertaining to that course.

The third source of revenue generation mechanism is via classroom teaching. This indicates that the advanced content requires subscription fees from the candidates. This method attracts many students from different regions. In the free trial of 15 days, they get engaged with the interesting learning platform and know that how good the app and the content are, hence they automatically feel the need for subscribing to the paid services.

The company had its revenues for 2019-20 at Rs 2,434 crore, and also reported a net profit of Rs 51 crore in 2019-20. It marked an increase in its productivity with the growth in the revenue over 82% to ₹2,380.7 crore in FY20. It generates the most revenue for the business, ultimately bringing an increase in productivity, benefitting the market.

FAQs

1. How is BYJU's Classes different from BYJU's – The Learning App?

These classes offer study material to the students with help through the online tutoring program. It teaches and solves the queries of the students by bringing together top teachers at one platform. It trains and helps the child to revise and study well with the extra classes. It also brings monthly objective and subjective tests, which keep the children associated with the learning program. It shows the reports to the students which helps them to improvise.

2. How can my child clear his/her doubts instantly during the online class?

The platform provides a live chatbox to provide instant support to the students, to help them resolve their queries immediately. It acts as a help desk for them, as it gives them a way for reaching the teachers. The child can ask his/her questions, and the specially assigned teachers will instantly assist and solve the doubts.

3. Can we choose the timing of the classes?

Yes, one can choose between a weekend or a weekday batch as per the scheduled curriculum of the school and the classes will be scheduled accordingly, which would bring flexibility in learning.

4. Do the classes provides lesson notes and homework?

Yes, homework will be provided after every class. The child can submit their homework and get the feedback of teachers. A child can also get access to the video lessons to practice tests and do revision conveniently.