BYJU’S

- ACCELERATING GROWTH
THROUGH STRATEGIC
ACqUISITIONS
 142023672045- Ganta Vahini

142023672058- Amula Anil

142023672049- Borikar Karthik

142023672049- Mazhar Uddin

 ● Introduction:

BYJU'S, an Indian edtech firm, has seen tremendous expansion and market dominance in the
education sector. Byju's app was created by Think and Learn Pvt. Ltd, a firm founded in 2011 by Byju
Raveendran,Divya Gokulnath, and a group of students. Initially, the company focused on providing
online video-based learning programmes for the K-12 market as well as competitive exams.in India.
Byju Raveendran
owns over 35% of the company, which is unusual for a co-founder.Byju's released Math App for Kids
and Parent Connect app in 2017. By 2018, it had 15 million users,with 900,000 of them being paid
subscribers. Byju's became India's first edtech unicorn the same year. By2019, 60% of BYJU students
were from non-metropolitan and rural areas Byju's has shown to be an effective solution provider for a
variety of exams such as IIT JEE, CAT, UPSC, and others. General Atlantic and Tencent
contributed.USD 11.4 million in Byju's, increasing its net worth to USD 4 billion. Even in July 2019, it
received USD150 million in finance from the Qatar Investment Authority for its growth. Furthermore,
there are a number of backers, including Naspers, Sequoia Cal
the Chan-Zuckerberg Initiative, and Lightspeed Venture Partners. This platform is also backed by T
Internet. Byju's is worth $22 billion. The firm claims to have over 150 million registered students as of
April 2023. International revenue accounted for more than 24 percent of total revenue, with collections
inIndia accounting for more than 75 percent.
 ● Background of the topic
BYJU'S has gained access to new client segments, increased brand equity, and allowed the
integration of supplementary products and technology into its existing platform through
acquisitions. In 017, BYJU'S purchased Tutor Vista and Edurite from Pearson, a worldwide
publishing and education company. This acquisition enabled BYJU'S to grow its global reach
while also gaining access to Tutor Vista's online tutoring capabilities.
In January 2019, it acquired Osmo, a US-based educational game developer. This acquisition
enabled BYJU'S to expand its early childhood leaming options and strengthen its position in
the worldwide market. Osmo's interactive games and educational toys are connected with
BYJU's digital leaming platform, giving young children with a comprehensive learning
experience. In August 2020, BYJU'S acquired WhiteHat Jr, a firm that specialises in coding
education for youngsters.
BYJU's was able to diversify its offerings by entering the coding and STEM education area as
a result ofthis acquisition. White Hat Jr.'s expertise in online coding training for youngsters
supplemented BYJU's current services, establishing the company as a leader in the digital
learning ecosystem. In April 2021, BYJU'S announced the acquisition of Aakash Educational
Services Limited (AESL),India's leading test preparation provider. BYJU'S was able to
increase its reach in the exam preparation market and strengthen its presence in tier-2 and
tier-3 cities as a result of this strategic purchase. It gave
access to a large network of physical coaching centres as well as a prominent brand in the
offline education industry. In the previous two years, the acquisition of Aakash has resulted
in a threefold rise inrevenue. Aakash currently operates over 325 facilities around the
country, servicing over 400,000 students.
 ● Questions of the topic

1. . Will Byju's acquisition strategy influence the business's success?

2. . What is the impact of AESL acquisition on the growth of Byju's?

3. . What are the challenges faced by Byju's after acquiring the various
businesses?

4. . What are the regulatory challenges faced by Byju's during its

acquisitions?
● Will byju's acquisition strategy
influence the business's success?

As the platform gained popularity, Byju’s vision expanded globally.

Partnerships with schools, extensive marketing campaigns, and
strategic acquisitions fueled BYJU’S rapid growth. The app’s
success also attracted significant investments, making it one of the
most valuable ed-tech startups globally. In 2016, the company
claimed that its app was downloaded more than 5.5 million times
in the last one year out of which 250,000 consumers were paid
annual subscribers and from there on their user base kept
on exploding by 2019.
Succes
● BACKGROUND:
s
Byju's acquisitions helped it expand into new markets, enter new
industries, and offer a wider range of products. The company's
acquisitions also helped it integrate different learning styles and
technologies.
Challenges
However, Byju's acquisition strategy also led to challenges,
including: Integration issues: Merging platforms, streamlining
processes, and fostering a unified company culture proved to be
more difficult than expected.
Overvaluation: Byju's paid inflated prices for some companies, which
led to financial strain.
Focus shift: Byju's focus on acquisitions may have diverted its
attention from core product development and user experience.
Negative press: Byju's faced criticism for its aggressive sales tactics
and questions about the quality of its educational offerings.
 ● RECOMMENDATION

Merger and acquisition (M&A) are integral to Byju's business

model success. The EdTech unicorn retook this financial path to drive its
goal of play-bas learning. The company purchased Osmo, a designer of
educational games. quisitions'
Impact on BYJU's Growth: These major purchases have
been critical to BYJU's growth trajectory.They have allowed the
company to diversify its product portfolio, access new market
categories
, and increase its presence both within and outside of India.
 ● CONCLUSTION:

BYJU's strategic acquisitions have been

critical to its quick expansion and edtech
market leadership. BYJU'S has enhanced
its position as a holistic learning platform
by increasing its product offerings,
entering new industries, and merging the
knowledge of acquired companies.
● What is the impact of AESL acquisition
on the growth of Byju's?

From gurukul's ancient learning systems to online

learning classes, the learning process has changed with the
development of technology. Ed-tech or technology in
education is not the new word for anyone more and it is the
latest development in the learning process of the education
market. We all could agree that the pandemic made all of us
realize the importance of having good
ed-tech companies in India as when the students didn't have
an option to go to the school and learn. Ed-tech companies
became a survivor as they provide their services at a
cheaper rate and the students can learn from anywhere and
anytime. If we are talking about India's ed-tech startups then
Byju's has its place at the top.
 ● BACKGROUND:

Byju's acquisition of Aakash Educational Services

vices limited
Limited in April
(AESL) 2021 a number of impacts on Byju's
in April
growth,
includin 2021 ha
g:
Accelerated offline growth
Byju's combined its online presence with Aakash's offline test prep to create an omni-channel synergy.
Increased revenue
The acquisition helped Byju's cross the $1 billion revenue mark and helped it look to close the next year at
$1.2-1.3 billion. Strengthened position in the education market
Byju's was able to eliminate some of its rivals in the education
market. Improved test prep
AESL's revenue and profits tripled after the acquisition. AESL also expanded its presence in India's tier
2, 3, and 4 cities. Created a formidable institution
The merger of Byju's and Aakash created a strong institution that could revolutionize education for students.
 ● RECOMMENDATION

This acquisition allows BYJU's to expand their

reach into the offline test preparation market
through AESL's established network of
centers. It also provides an opportunity for
AESL to transition to online education by
leveraging BYJU's digital capabilities and
expertise in developing personalized
learning programs.
 ● CONCLUSION:
BYJU'S is now eliminating all of its rivals in the education market and
strengthening its position. The acquisition of the two companies will bring
a positive impact on the education market in India.
At present time Byju's has over 80 million students cumulatively learning from
the app
, 5.5 million annual paid subscriptions, and an annual renewal rate of 86
percent. During April-September 2020, Byju's added 45 million new students
to its platform. For BYJU'S, the next set of segments of interest, and possibly
acquisitions, could come from other areas of test preparation such as civil
services, government, and banking exams, as well as entrance exams in law
and management. It is considering an initial public offering over the next 18-
24 months.
Byju's
● Whatalso found
areitself
theentangled
challenges in legalfaced
and regulatory challenges. The
by Byju's
company faced lawsuits and investigations stemming from allegations of
after
theacquiring
financial various
mismanagement and unethical business practices. These legal issues
werebusinesses?
not just a threat to its financial health but also to its public image
 ● BACKGROUND:

Financial strain
Byju's rapid expansion and acquisition strategy led to significant
financial strain. The company raised billions in funding, but its heavy
reliance on external capital raised concerns about sustainability.
Debt load
Byju's accumulated substantial debt, leading to increased financial
pressure. The company struggled to repay a $300 million loan from
a Singaporean firm in 2021.
Poor corporate governance
The government's probe highlighted poor corporate governance
and compliance practices. Investigators noted the startup's failure to
hire professionals to manage finances and compliance.
Inconsistent financing
Bad decisions and inconsistent financing prevented the corporation
from paying its obligations.
Byju's also found itself entangled in legal and regulatory challenges. The
company faced lawsuits and investigations stemming from allegations of
financial mismanagement and unethical business practices. These legal
issues were not just a threatge.
toBad decisionshealth
its financial and but also to its public ima
● inco RECOMMENDATIONn: sistent financing
prevented the corporation from paying its obligations. Company
disagreements and leadership instability hurt BYJU'S operations. Due to
negative press, BYJU'S brand suffers, its reputation suffered from data
breaches, false advertising, and forced purchases
Once an education IT pioneer, BYJU'S, failure convoluted startup workers,
investors. Byju failed due to financial mismanagement. Bad decisions and
inconsistent financing ying its
prevented the corporation fromobligations.
pa ● C
Conclusion: ompany
leadership instability
disagreements and hurt BYJU'S
operations
Regulatory Setbacks e regulatory challenges faced by Byju's
● What are
In July 2020, BYJU's faced regulatory issues in India concerning its acquisition
th during its
of
acquisitions?
Whitehat Jr. The government expressed concerns over advertisements
targeting children and the quality of education offered. This led to increased
scrutiny and a need to adapt to changing regulatory dynamics
.Mergers and acquisitions (M&A) are rife with regulatory issues. These issues
are commonly related to antitrust laws, securities laws, company laws, foreign
exchange, and investment laws. Therefore, the legal advisor to the deal is as
important as the financial advisor or the investment bank.
 ● BACKGROUND:

Financial irregularities Byju's has faced allegations of financial irregularities,

including discrepancies in revenue recognition and potential violations of
the Foreign Exchange Management Act (FEMA).
Corporate governance
The government's probe highlighted poor corporate governance
and compliance practices, including the failure to hire
professionals to manage finances and compliance.
MCA scrutiny
Byju's came under scrutiny from the Ministry of Corporate Affairs
(MCA) after the resignation of three directors and the auditor,
Deloitte. The MCA ordered an inspection into Byju's books to
ascertain any potential corporate governance lapses.
Other challenges Byju's has faced include:
Aggressive sales tactics, Alleged predatory lending practices,
Failure of many acquisitions to deliver as expected
 RECOMMENDATION:

The government's probe highlighted that poor corporate governance and

compliance practices, combined with changes in the funding environment,
contributed to Byju's increasing losses. Investigators noted the startup's failure
to hire professionals to manage finances and compliance, leading to its
financial troublesWhile BYJU'S wanted to project the image of an international
edtech brand globally, back home it faced a big blot on its reputation with
allegations of cheating students and parents, especially those from lower
economic stratas.spokesperson told the publication that the employees were
“let go with proper procedures” upon failing to “meet expectations after a
performance improvement plan
 ● CONCLUSION:
Conclusion. Byju's, with its innovative strategies, changed the educational
technology, data analytics, and expert educators, Byju's helped millions of
industry. Using
students overcome learning challenges and improve their academic
performanceBYJU'S's most recent acquisition - Hello English is a Provider of
English language learning solutions, founded in 2012 and located in Jaipur.
BYJU'S acquired it in March 202
Thank you! :)