W33972

BYJU’S: THE BLUE OCEAN STRATEGY

Kushagra Sharan and Anubha Shekhar Sinha wrote this case solely to provide material for class discussion. The authors do not intend
to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other
identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveypublishing.ca. Our goal is to publish
materials of the highest quality; submit any errata to [email protected].

Copyright © 2024, Ivey Business School Foundation Version: 2024-01-18

Byju Raveendran, founder of the learning application (app) BYJU’S, was pondering the challenges his
organization was facing and seeking opportunities for positive transformation, despite recent losses. When
Raveendran first entered the test preparation industry in 2007, with the idea of technology-enabled learning
for his users, the market was uncontested. In 2015, Raveendran introduced recorded lectures on a digital
platform and launched BYJU’S—The Learning App. The new venture created and maximized this
uncontested space, soon securing unicorn status in the market. However, by 2017, it was evident that
BYJU’S was not the only provider of technology-based learning in the test preparation industry. Rival firms
had built a similar ecosystem of content creators and technological infrastructure, and had started to provide
related educational content at the same price or lower.

In response, BYJU’S expanded its product offerings to new target user groups and started acquiring related firms
to retain its market leader position. Raveendran then increased the size of his team to prepare for the company’s
rapid expansion. BYJU’S acquired traditional and digital education firms that focused on different target
segments. The company was able to cater to students preparing for all types of tests at the national level, working
professionals looking for industry-relevant training, and children interested in learning new concepts.

Between 2017 and 2022, BYJU’S acquired 13 Indian companies and four foreign firms (see Exhibit 1).
Both the acquisitions and sudden surge in hiring led to financial constraints for BYJU’S. In its audited
financial statements, which were delayed by 18 months, the firm reported a loss of over US$550 million1
for fiscal year 2020–21, in a drastic rise in losses from the previous year’s $31.44 million.

In its brief history, BYJU’S had grown in two phases. From 2007 to 2016, BYJU’S grew exponentially by
creating value and improvising innovation. From 2017 to 2022, the company shifted to rapid acquisition of
firms and incurred major losses. In the first phase, BYJU’S created an uncontested market space that
reduced competitive pressure, provided sustainable growth without the need for frequent acquisition, and
kindled an entrepreneurial spirit that fostered differentiation and innovation. In the second phase, as
competition was intensifying, BYJU’S faced operational issues in cost management, market expansion,
resource allocation and optimization, and customer retention.

1
All currency amounts are in US$ unless otherwise specified.
Page 2 W33972

Raveendran wondered what he could do to bring his company back to the market leadership position he
had achieved by following a blue ocean strategy. He wanted to find opportunities again, but he wondered
how to sustain a leadership position in a dynamic market. He had to manage disruption risk and make
effective use of resources and manage growth. To address current operational concerns, Raveendran could
monitor cost analysis, improve supply chain logistics, and realign pricing. In 2015, BYJU’S was a pioneer
in the market with unicorn status, having overcome resource, motivational, and cognitive organizational
hurdles. In 2022, however, BYJU’S was facing major financial challenges. Raveendran wondered if he
should focus on new opportunities or on improving the current operation, or both.

HISTORY OF BYJU’S

Raveendran grew up in a family of teachers. His father taught physics and his mother taught mathematics.
After completing an engineering degree from a government college, he began a career as a service engineer
for a multinational shipping firm, which involved frequent travel. In 2003, while visiting the Indian city of
Bangalore, his friends sought his help for preparing for the Common Admission Test (CAT) to gain
admission to the prestigious Indian Institutes of Management. With his own outstanding success in the CAT
100th percentile, Raveendran helped his friends achieve their own high scores. The experience also
showcased his unconventional teaching methods that simplified complex concepts and problem-solving.
Encouraged by this success, he continued to assist more friends achieve impressive results in their CAT
preparation. Over the next year, Raveendran realized that effective test preparation was a clear need in the
education industry. In 2006, he transitioned into full-time tutoring, offering both traditional and non-
traditional methods to help candidates excel in mathematics for various entrance tests.

Raveendran discovered that approximately 200,000 candidates each year took national entrance competitive
tests, such as the CAT for Indian Institutes of Management admissions.2 However, only 5,100 of all test
takers managed to successfully secure an admission, for a low acceptance rate of about 2.6 per cent. 3 In
contrast, the average acceptance rates in top business schools in the United States ranged from 9 to 25 per
cent, and in Europe from 16 to 32 per cent.4 The intense competition for entrance to India’s top business
schools drove candidates to seek assistance from private tutors and coaching institutes, hoping to gain the
necessary skills to tackle challenging test questions and to excel in competitive entrance exams.

Raveendran’s teaching methods gained popularity among students, who found his strategies effective for
solving questions quickly and for engaging learning that led to greater success in exams such as the CAT.
His methods started with in-person teaching and avoided the rote learning that traditionally dominated
India’s education systems. Raveendran began holding workshops with approximately 40 students, which
soon grew to 1,000 attendees. He conducted his teaching sessions in auditoriums using large screens. His
delivery of the lessons became an engaging performance.

In 2007, with high demand in his services, Raveendran established his company BYJU’S, and expanded
the workshops into different cities across India. He used large auditoriums and stadiums to accommodate
the increasing number of students. In 2009, in response to continuing growing demand, Raveendran formed

2
Prachi Verma, “35% Female Candidates Appear for CAT 2021 among 1.92 Lakh Candidates,” The Economic Times,
December 3, 2021, https://economictimes.indiatimes.com/industry/services/education/35-female-candidates-appear-for-cat-
2021-among-1-92-lakh-candidates/articleshow/88067273.cms.
3
“Total Seats in IIM,” Foreign Admits, January 6, 2021, https://blog.foreignadmits.com/total-seats-in-iim.
4
J. Vignesh, “How 8 Students Helped Byju Raveendran Build His Multi-Crore EdTech Business,” The Economic Times, June
23, 2017, https://web.archive.org/web/20180412072941/https://economictimes.indiatimes.com/small-
biz/startups/newsbuzz/how-8-students-helped-byju-raveendran-build-his-multi-crore-edtech-
business/articleshow/59274288.cms.
Page 3 W33972

a dedicated team of experts to help him meet the rising demand. He recruited team members from his most
motivated students and trained them to enhance the learning experience for learners, who were preparing
for national entrance exams. The new BYJU’S team included a vice-president and a chief operating officer,
who would help drive the technological expansion of BYJU’S to meet the constant increase in demand.
BYJU’S workshops were recorded and broadcast to reach a remote audience. This way, BYJU’S was able
to provide a wider base of customers with simplified content at a reduced price (approximately half the
average cost of lessons in the industry). The BYJU’S team also included a chief content officer (also a
former BYJU’S student), who helped enhance the workshops content with animations and engaging videos
that were later delivered as online classes.

Raveendran saw considerable potential in the test preparation industry for candidates who were eager to
master tests such as the CAT and other government exams, as well as for people who loved learning.
BYJU’S started dominating the exam preparation market with technology-enhanced and video-based
learning. BYJU’S was already making effective use of technology, but the company was planning to expand
further to reach large numbers of students across India from one location.

THE TEST PREPARATION INDUSTRY

The Indian test preparation industry was categorized into two main tutor groups: 5 organized and
unorganized. Organized tutor groups employed faculty members with subject-specific expertise. They had
administrative teams that managed course scheduling, material distribution, and teaching for large groups
of candidates who were either local and from elsewhere, residing in rented accommodations. Some
candidates had to take out loans to cover upfront course fees. Unorganized tutors, in contrast, operated
mainly from their own homes. They scheduled and conducted classroom sessions for local candidates at a
lower cost than organized groups. The sessions typically included 15 to 20 students. Monthly fees were
paid to the private instructors, who were not necessarily specialized in the subject they were teaching.

The classification of organized and unorganized tutor groups applied mainly to two academic levels: 6
undergraduate and postgraduate. At the undergraduate level, organized and coaching groups focused on
preparing students for entrance exams in engineering and medical programs. They provided instruction on
subjects such as mathematics, physics, and chemistry for major engineering institutions, including the
Indian Institutes of Technology, the National Institutes of Technology, and the Birla Institute of
Technology. Organized groups also provided instruction in subjects such as physics, chemistry, and biology
for various medical institutions, including the All India Institute of Medical Sciences. At the postgraduate
level, the tutor groups and private tutors provided instruction to working professionals, final-year
undergraduate students in specific cities, and non-working candidates to prepare them for management
entrance tests (e.g., the CAT). The instruction covered subjects such as quantitative ability, verbal ability,
data interpretation, and logical reasoning for admission into prestigious management institutions such as
the Indian Institutes of Management (see Exhibit 2).

Key organized tutoring and coaching groups offered various different instruction formats, including in-
person sessions, correspondence courses (i.e., distance learning or postal coaching), home-based mock tests,
and centre-based nationwide exam tutoring. In-person sessions featured faculty-led teaching, chapter
booklets, and discussions of practice tests and exam series. Correspondence courses included printed

5
“The New Opportunity in India’s Test Prep Sector,” Godcap, September 16, 2013, https://www.godcap.com/blog/the-new-
opportunity-in-indias-test-prep-sector.
6
“The Growth of Coaching Institutes in India [A Case Study],” Startup Talky, August 2, 2020, https://startuptalky.com/coaching-
institutions-in-india/.
Page 4 W33972

booklets and discussion of exam series. Centre-based nationwide tutoring replicated the entrance exam
environment that candidates would find in a typical institution. They provided printed question booklets
and answer sheets. The completed answer sheets were collected and solution booklets were then provided.
The student marks and percentiles achieved in the tutor exams were displayed at the centre for review,
although some tutor groups sent results via text message to registered mobile numbers.

Tutoring centres were located in various cities across the country. They employed specialized part-time and
full-time faculty for each subject area. Based on enrolment numbers, the learners were typically divided
into batches of approximately 60 students per session.7 Faculty members of different experience levels
developed study materials including practice problems, printed booklets, practice tests, and nationwide
tests. They were trained to teach and create content according to the tutor group’s pedagogy. Tutoring centre
heads were hired to coordinate faculty and manage scheduling and administrative tasks. The entire process
included student enrollment, batch formation, faculty recruitment, content creation, in-person sessions, and
administrative procedures. Each centre across the country applied the sample instruction process.

BYJU’S JOURNEY

Before he founded his own tutoring company, Raveendran identified two gaps in the test preparation industry. First,
students had trouble understanding basic concepts from the textbooks provided by schools or course materials
provided by tutors. Students memorized the concepts, rather than understanding them. They struggled to visualize
and relate to real-life scenarios abstract concepts such as the area of circle or the Pythagorean theorem.

Second, the potential of video-based content and technology was not being used effectively. Technology
could revolutionize the way concepts were taught, making learning more engaging and accessible for
students. Technology-enabled education could reach a broader audience without having to hire faculty
members for every subject in every city. It could reduce the administrative burden of paperwork, enrolment,
and providing in-depth personalized feedback.

This insight fuelled Raveendran’s vision of delivering refined, relevant, and engaging content to a large
number of students at a cost-effective rate, compared to traditional classroom tutoring. His video-based
lessons featured animation, graphics, and visually appealing elements to enhance student comprehension
of complex concepts. He also offered comprehensive, personalized assessments that provided students with
detailed insights into their strengths and weaknesses, as he explained: “My experience with graduate
students made me realize that you can make a bigger impact if you can make an intervention in the way
students learn in their formative years.”8

Based on the two major gaps Raveendran identified, he founded BYJU’S in 2009 and entered the exam
preparation industry. In 2011, BYJU’S expanded into the undergraduate level, working with all grades of
students (from kindergarten to grade 12) to understand their pain points. Using concepts that were related
to real-life examples seemed to help the students understand and respond by asking more questions.
BYJU’S developed intriguing videos for each concept, and added more videos to help students understand
each particular concept and enjoy learning, based on the company’s motto, “Fall in love with learning.”

7
“Courses: Overview, Content and Syllabus,” Vobium, accessed September 8, 2022, http://www.vobium.com/view/courses/1-
9159-526/std-xi-xii-pcmb-neet-pcb-training-coaching-tuition-by-kalrashukla-classes.
8
Vinay Dwivedi, “Why Byju Raveendran's Firm Is Leading in the Educational Technology Space,” The Economic Times, June
13, 2016, https://economictimes.indiatimes.com/wealth/earn/why-byju-raveendrans-firm-is-leading-in-the-educational-
technology-space/articleshow/52700525.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.
Page 5 W33972

Product Team

BYJU’S innovatively integrated interactive video content into its teaching methodology. The team
members started by capturing instructor gestures and hand movements to captivate students and hold their
attention. They then integrated animation, virtual objects, and simulations into the recorded lectures for
comprehensive videos that effectively conveyed both simple and complex concepts. Incorporating animated
objects through hand movement manipulation fostered an augmented reality experience for students that
helped enhance their understanding of theoretical concepts.9 Raveendran added product team member to
the media team to create innovative content.10 The media team professionals added animation and graphics
to the recorded lectures, while the product team members created scripts for videos and other content (e.g.,
text, assignments, quizzes, tests) that was delivered in booklets and in person. The video content was tested
on the BYJU’S learning management system and other platforms.

Knowing that content was the heart of BYJU’S, Raveendran incubated a culture of questioning,
brainstorming, synthesizing, and representing the instruction material. Whenever content team members saw
a need for changing the way concepts were explained or conceptualizing different products for the students,
they had full freedom to make revisions. Regular brainstorming sessions were held among team members
resulted in new concepts and working projects, such as adding in-video questions, storyboarding, and adaptive
question banks.11 Time stamps, video titles, video clip numbers, and video-start and video-end times were
used to map the question precisely to the instant where the related concept was discussed. Each resource was
effectively engaged to help deliver high-quality content in a simplified and innovative way.

Raveendran clearly stated his expectations to all team members. He engaged his team and explained all the
nuances of the projects. He incorporated positivity, enthusiasm, trust, and commitment. In turn, team
members projected a behaviour of co-operation, self-initiative, and project execution. The BYJU’S
approach helped students understand what to learn, when to learn, how to learn, and how much to learn.
Students were also able to relate to the concepts, chapters, and subjects with consistent instructor teaching
different standards, which made them feel connected to both the subject and the instructor.

Learning Management System

The BYJU’S content was tested and hosted on a learning management system that could manage content
aesthetics, adaptive learning, and user scalability. The product team was trained on preparing the various content
types (e.g., text, questions, videos) into the required format for the BYJU’S learning management system.

Products

BYJU’S instructional products were offered at approximately half the industry average. They included in-person
sessions, printed booklets, and chapter practice problems for students preparing for undergraduate exams (e.g.,
engineering courses, medical programs) and postgraduate studies (e.g., management courses, executive
programs). The instructional videos covered all concepts that candidates would find in the entrance exams. For
students without internet access, which was common in some parts of India, the products were stored and made
available to students in digital memory cards and electronic devices such as tablets, especially for students who

9
“Visualizing Pythagoras Theorem: Learn with Byju’s,” YouTube, November 10, 2015, https://youtu.be/z8deq-zdaIg.
10
“Respiration in Animals | Class 10 | Learn with Byju’s,” YouTube, October 3, 2020, https://youtu.be/Zz5KNkpR_uQ.
11
The adaptive learning algorithm suggests that if a learner answers a tricky question incorrectly, it will present either another
question related to the same difficult concept or two different questions that collectively encompass simpler concepts, aimed
at helping the learner better understand and eventually solve the challenging question.
Page 6 W33972

were unable to attend in-person sessions. Students could securely access products on the BYJU’S online
platform via the BYJU’S app on their tablets, desktops, or other device. They could watch video-based sessions
at their own pace and go back to specific sections, animations, graphics, and other components.

Aiming to continuously improve, Byjus transferred all content into a new learning system in 2015 to
enhance the student’s learning experience. This project involved migrating over 10,000 questions
individually, aligning them with their respective videos, conducting thorough testing, and integrating timed
tests. Brainstorming sessions were added to prioritize features and design elements such as the interface
and user experience. Extensive testing was conducted daily for nearly a month to ensure the functionality
of the new system, with a formal application launch in 2015. The company’s products were made available
to users on both the iOS and Android operating systems through the company’s digital mobile app,
BYJU’S—The Learning App, providing students with convenient access to learning from anywhere.

BYJU’S—The Learning App

After its success preparing candidates for undergraduate and postgraduate programs, BYJU’S expanded its
products to cater to students in lower grade levels and from school boards such as the Central Board of Secondary
Education, the Indian Certificate of Secondary Education, International Baccalaureate, and various other state
boards. BYJU’S also expanded its team of professionals to create more content for the new user base. The
company’s digital app, BYJU’S—The Learning App, had become increasingly popular with users, who were
drawn by app’s used of animation and graphics. The addition of gamification features, which used typical
functions found in video games (e.g., point scoring systems, leader boards), further increased user engagement.
BYJU’S monitored average times spent using the app went and found that they consistently increased from 12
minutes at the start to 40 minutes, which later increased to 40 minutes and eventually to 71 minutes.

New features in the app included personalized mentorship and real-time play among local students, with
competitions for points scored by answering mathematics or science questions correctly. Personalized results
for each user were available both to the students and their parents. They included time spent on the app, time
spent on each question, level of accuracy in solving questions, strengths and weaknesses in each subject area,
efficiency rate for each type of question (e.g., application, memory, numerical, theoretical), and achievement
badges that encouraged users to continuously improve (see Exhibit 3). By 2018, approximately 40 million
people were using BYJU’S—The Learning App, with three million of them as paying subscribers. With a
user retention rate of 85 per cent, most user reviews were favourable12 (see Exhibit 4).

BYJU’S continued expanding its user base to reach younger students. According to Vinay MR, the
company’s chief content officer, the company added classic stories from The Walt Disney Company
(Disney) in its content to engage children in kindergarten levels:

Our programs aimed at children in LKG and UKG [lower and upper kindergarten] are designed to give a
strong head-start to the way children start their learning journey in India. BYJU’S pedagogy, engaging
videos, and content expertise combined with Disney’s world-class storytelling are aimed at fueling
curiosity and the love for learning in children from their formative years. We strongly believe that concept
building from a young age plays a crucial role in the way a child approaches learning in the future.13

12
Sindhuja Balaji, “How Are India’s Biggest EdTech Startups Winning Students? By Treating It like a Game,” Forbes, March
11, 2018, https://www.forbes.com/sites/sindhujabalaji/2018/03/11/how-are-indias-biggest-edtech-startups-winning-students-
by-treating-it-like-a-game/?sh=413001bc6908.
13
“Disney. Byju’s Early Learn App Now Offers Learning Programs for Kindergarten Kids in India,” APN News, June 3, 2020,
https://www.apnnews.com/disney-Byjus-early-learn-app-now-offers-learning-programs-for-kindergarten-kids-in-india/.
Page 7 W33972

BYJU’s partnered with Disney to offer a distinctive educational experience for children aged four to eight years.
This collaboration expanded the availability of engaging, animated content, providing personalized and interactive
courses featuring beloved Disney stories, famous characters, songs, rhymes, quizzes, and games to stimulate
curiosity, enhance analytical skills, and foster fundamental concept-building. According to Pramod Sharma, the
company’s president of technology and product, this strategy was aligned with the BYJU’S educational mission:

Children today are digital natives and possess an intuitive understanding of technology. Our
learning programs provide the perfect offline and online integration to offer children an enhanced
and engaging experience. Our adaptive learning engine will also understand the child’s favourite
Disney characters, proficiencies, and progress and recommend quests and learning content based
on their preferred formats like videos, quizzes, rhymes, and worksheets.

FUNDING AND VALUATION

In 2013, BYJU’S had received its first round of funding, from Aarin Capital. That round was soon followed
by more funding from various investors including Tencent, Lightspeed Venture Partners, International
Finance Corporation, Canada Pension Plan Investment Board, and Sequoia Capital India. BYJU’S became
the first organization in Asia to receive funding from the Chan Zuckerberg Initiative (see Exhibit 5). It was
also supported financially by the Brussels-based family offices of Verlinvest, as well as Napsters Ventures,
and General Atlantic. By 2019, BYJU’S had received approximately $785 million (see Exhibit 6).

The Market and BYJU’S

In 2020, the Indian educational technology market was valued at $750 million, but it was estimated to grow
rapidly at a compound annual growth rate of approximately 40 per cent to reach $4 billion by 2025. The
kindergarten to grade 12 segment was estimated to account for approximately 37.5 per cent of the market.14
According to the Telecom Regulatory Authority of India, internet use increased by almost 4 per cent in just
one quarter, from 795.18 million users in December 2020 to 825.30 million in March 2021. 15 The rise in
internet and smartphone use, along with the Indian government’s 2020 New Education Policy, drove the
growth of the country’s online education rates (see Exhibit 7).

The government’s New Education Policy, which replaced the previous education policy of 1986, was
intended to grow and evolve the education system of India by 2040. Under this policy, the National
Education Technology Forum was created to deliver quality learning and to amplify the level of assessment
through technology-enabled learning, learning management systems, and enterprise resource planning
software for schools and higher education. Consistent with this new vision, the National Institution for
Transforming India, Aayog partnered with BYJU’S to provide new resources to support learning for Indian
students. “NITI Aayog is partnering with BYJUS to make these supplemental learning resources available
to children in the government schools in the Aspirational Districts on a pro-bono basis,” explained Amitabh
Kant, the chief executive officer of the National Institution for Transforming India, Aayog. Under this
initiative, BYJU’S would provide premium learning resources to students in 112 government school
districts and approximately 3,000 students in grades 11 and 12 would receive free tutoring sessions for
entrance examinations in engineering and medicine programs.16
14
“India to become the Edtech Capital of the World,” India Brand Equity Foundation, November 26, 2021,
https://www.ibef.org/blogs/india-to-become-the-edtech-capital-of-the-world.
15
“Internet Users up Nearly 4% to over 825 Million in Q4 of FY21: TRAI Data,” Business Standard, August 27, 2021,
https://www.business-standard.com/article/economy-policy/internet-users-up-nearly-4-to-over-825-million-in-q4-of-fy21-trai-
data-121082701105_1.html.
16
“NITI Aayog ties up with BYJU’S to provide study material to schools,” The Indian Express, September 17, 2021,
https://indianexpress.com/article/india/niti-aayog-ties-up-with-Byjus-to-provide-study-material-to-schools-7514119/.
Page 8 W33972

THE DILEMMA

In 2018, BYJU’S was recognized as a unicorn start-up by the Ministry of Corporate Affairs, and two years later
as a “decacorn” company in 2020, after exceeding $10 billion in valuation with an investment by Mary Meeker’s
Bond Capital.17 The marquee list of investors in the company included leading venture capital firms such as
BlackRock Inc., T. Rowe Price, Baron Funds, Maitri EdTech, Oxshott Venture Fund, MarketX Ventures, and
Vitruvian Partners. Between 2017 and 2018, the company’s revenue doubled from $40 million to $80 million.

In 2020, BYJU’S became the title sponsor of the Indian national cricket team and an official sponsor for
the FIFA World Cup in Qatar in 2022. The company’s plans for the future included launching a “BYJU’S
Future School” to serve as a bridge between passive (resistive) and active (capacitive) learning through
interactive learning platforms spread across a wide range of countries (e.g., Mexico, Brazil, Indonesia,
United Kingdom, United States). Other plans included developing a two-instructor model and a hybrid
learning model for its sessions, with more than 500 tutoring centres located in more than 200 Indian cities.18

However, BYJU’S reported a loss of over $550 million in fiscal year 2020–21, which was drastically higher
than the loss of over $31 million the year before. After achieving exponential growth in its early years, the
made 17 new company acquisitions between 2017 and 2022 and steadily incurred losses, prompting the
organization to lay off employees, improve efficiency, and postpone ambitious expansion plans. Unlike the
uncontested market that Raveendran had entered when he founded BYJU’S, the industry was becoming
crowded with new entrants embracing opportunities, raising funds, and generating high revenues.

Raveendran wondered if he should avoid the new competitors by finding another uncontested market space
that could foster sustainable growth and reignite his entrepreneurial drive through differentiation and
innovation. Or should he overcome new competitors by addressing operational challenges through financial
restructuring, renegotiating terms with investors, expanding into new international and national areas, and
striking new partnerships. The third option was to combine both approaches, with a short-term focus on
operational concerns and a long-term vision on creating an uncontested market space. Raveendran had to
choose the next step forward for his company.

17
Manish Singh, “Mary Meeker’s Bond backs Indian online learning startup Byju’s,” Techcrunch, June 26, 2020,
https://techcrunch.com/2020/06/25/mary-meekers-bond-invests-in-indian-online-learning-giant-Byjus/.
18
“BYJU’S to launch 500 physical tuition centres as edtech firm ramps up blended learning,” Money Control, February 17,
2022, https://www.moneycontrol.com/news/business/companies/Byjus-to-launch-500-physical-tuition-centres-as-edtech-
firm-ramps-up-blended-learning-8120241.html.
Page 9 W33972

EXHIBIT 1: COMPANIES ACQUIRED BY BYJU’S, 2010 TO 2022

Date Company Amount (in US$ Million) Location

Mar 2022 Hello English $6.94 India
Dec 2021 GeoGebra $100 Austria
Sep 2021 Tynker $200 United States
Aug 2021 Whodat Undisclosed India
Jul 2021 Great Learning $600 India
Jul 2021 Toppr $150 India
Jul 2021 Epic $500 United States
Mar 2021 HashLearn Undisclosed India
Feb 2021 Scholr $2.47 India
Jan 2021 Aakash Education Services Limited $1,000 India
Sep 2020 LabInApp Undisclosed India
Aug 2020 WhiteHat Jr $300 India
Jan 2019 Osmo $120 United States
Jul 2018 Math Adventures Undisclosed India
Jul 2017 TutorVista Undisclosed India
Jul 2017 Edurite Undisclosed India
Jan 2017 Vidyartha $7.32 India
Jun 2015 Infinite Student Undisclosed India
May 2010 Specadel Undisclosed India

Source: Created by the case authors with data from BYJU’S “Investments & Acquisitions,” Tracxn Technologies Limited,
accessed July 12, 2022.
Page 10 W33972

EXHIBIT 2: SELECTED COMPANIES IN INDIA’S TEST PREPARATION INDUSTRY

Players Product Platform Users per Founding Major Segment

Year Year Served
Career Programs for consumer 212 in-person 21,656 1996 Postgraduate
Launcher test preparation industry centres in India (final year
Educate and vocational training; undergraduate
Limited Diverse target segments students, graduates,
working professionals,
and non-working
candidates)
Triumphant Programs for national and 190 in-person Around 1992 Postgraduate
Institute of state-level entrance exams centres in 100 150,000 (final year
Management and international exams towns and cities undergraduate
Education in India students, graduates,
Private Limited working professionals,
and non-working
candidates)
Aakash Programs for Joint 200 in-person Around 1988 Kindergarten to grade
Education Entrance Examination centres in India 250,000 12 (K-12) with a
Services (JEE) and National particular focus on the
Limited Eligibility cum Entrance medical entrance
Test or the All India Pre- exam (grades nine to
Medical Test 12)
Forum For Courses for students in 67 in-person Around 1992 K-12 with a particular
Indian Institute grades 6 to 12 preparing centres in 43 150,000 focus on engineering
of Technology for the JEE, JEE cities in India entrance exams
Joint Entrance Advanced, National Talent (grades nine to 12)
Examination Search Exam, Kishore
Vaigyanik Protsahan
Yojana Exam, and others.
Jamboree Programs for Graduate 35 in-person Around 1993 Postgraduate students
Management Admission centres in India 12,000
Test, Graduate Record
Examinations, Scholastic
Assessment Test,
American College Testing,
Test of English as a
Foreign Language, and
International English
Language Testing System

Vajiram and Course Materials for the 3 in-person 10,000 – 1976 Graduate and
Ravi Civil Services Examination centres in Delhi 12,000 postgraduate students
Test Series, Textbooks and Chennai,
India

Source: Prepared by the case authors from “About Us,” Vajiram & Ravi, accessed September 8, 2022,
https://vajiramandravi.com/about-us; Kritika Sharma, “Inside India’s giant IAS Coaching Factories: Hope, Hype and Big
Money,” The Print, accessed September 8, 2022, https://theprint.in/india/governance/the-inside-story-of-indias-giant-ias-
coaching-factories-hope-hype-and-big-money/93703; “About Jamboree,” Jamboree, accessed September 8, 2022,
https://www.jamboreeindia.com; Ishani Duttagupta, “How a Bunch of Edu-Tech Entrepreneurs Are Tapping the Fast-Growing
Niche of Overseas Education,” accessed September 8, 2002, https://economictimes.indiatimes.com/small-
biz/entrepreneurship/how-a-bunch-of-edu-tech-entrepreneurs-are-tapping-the-fast-growing-niche-of-overseas-
education/articleshow/54756011.cms?from=mdr; “CL Educate Ltd.,” Indian Brand Equity Foundation, accessed September 8,
2022, https://www.ibef.org/industry/education-sector-india/showcase/cl-educate; “About Us,” Triumphant Institute of
Management Education, accessed September 8, 2022, https://www.time4education.com/About-TIME; “About Us”, Forum For
Indian Institute of Technology Joint Entrance Examination, accessed September 8, 2022, https://www.fiitjee.com/aboutus;
“About Us,” Aakash Education Services, accessed September 8, 2022, https://www.aakash.ac.in/aakash-at-a-glance.
Page 11 W33972

EXHIBIT 3: SAMPLE PROGRESS REPORT ON BYJU’S – THE LEARNING APP

Source: “One-on-one Guidance”, BYJU’S—The Learning App, accessed October 16, 2022, https://byjus.com/byjus-the-
learning-app.

EXHIBIT 4: STUDENT REVIEWS OF BYJU’S SESSIONS

Student Exam Name Comments

Student 1 Class 10 | State I used to regularly watch the recorded videos and solve various
Topper | practice tests available on the app. This helped boost my
Maharashtra confidence level.
Student 2 NEET | AIR – 28 BYJU’S played a very important role in my NEET [National Eligibility
cum Entrance Test] preparation. The personalized program and the
video lessons helped me learn the most complex of concepts in an
easy way. The AITS [All India Test Series] held at a national level
allowed me to set a standard for myself and identify areas of
improvement.

Source: Prepared by the case authors from “Byjus Toppers Speak,” BYJU’S, accessed July 12, 2022,
https://byjus.com/success-stories.
Page 12 W33972

EXHIBIT 5: BYJU’S MILESTONES, 2007 TO 2020

Year Milestone
2007 Started classroom classes for Common Aptitude Tests (CAT)
2009 Started video-based online session for CAT
2011 Think and Learn Pvt. Ltd. founded with a strong base and focus on the K-12 segment
2014 Tablets incubated to spread and share lessons
2015 BYJU’S—The Learning App launched
2015 Programs launched for grades 6 to 12 on BYJU’S—The Learning App
2016 First Indian organization to receive the Chan Zuckerberg initiative investment
2017 Programs launched for grades 4 and 5 on BYJU’S—The Learning App
2017 Launch of Mathematics Kids App and Parents Connect App
2018 India’s first educational-technology unicorn status achieved
2019 Users from non-metro cities and rural cities comprising 60 per cent of BYJU’S students
2020 Status of “decacorn” in India achieved

Note: K-12 = kindergarten to grade 12

Source: Created by the case authors from “About Us,” BYJU’s, accessed July 12, 2022, https://byjus.com/about-us.
Page 13 W33972

EXHIBIT 6: BYJU’S FUNDING ROUNDS AND VALUATIONS

Date Investors Amount (in US$ Million) Round

Nov
Aarin Capital $9 Series A
2011
Sep
Aarin Capital $9 Series A
2013
Jul
Sequoia Capital $25 Series B
2015
Sep
InnoVen Capital $5 Debt
2015
Jan
Lightspeed Venture Partners $20 Secondary
2016
Mar
Sofina, Sequoia Capital, Aarin Capital $75 Series C
2016
Sep Lightspeed Venture Partners, Sofina, Sequoia Capital,
$50 Late VC
2016 Times Internet, Chan Zuckerberg Initiative
Dec
International Finance Corporation $15 Series E
2016
Mar $30
Verlinvest Valuation: $600 Series F
2017
Jul
Tencent $40 Late VC
2017
Dec $540
General Atlantic, Prosus, CPP Investments Valuation: $4,000 Late VC
2018
Mar $11.5 Growth
General Atlantic, Tencent Valuation: $4,000
2019 Equity VC
Jul $150 Growth
Qatar Investment Authority Valuation: $5,800
2019 Equity VC
Jan $200 Growth
Tiger Global Management Valuation: $7,800
2020 Equity VC
Jun $23
Bond Valuation: $10,500 Late VC
2020
Aug $122
DST Global Valuation: $10,500 Series F
2020
Sep General Atlantic, Silver Lake Partners, Tiger Global $500
Valuation: $10,800 Series F
2020 Management, Owl Ventures
B Capital Group, Baron Capital, Arison Investments,
Mar $460
XN Exponent Holding, TCDS India, Tiga Investments, Series F
2021 MC Global Edtech Investment Holdings Valuation: $13,00
Jun Blackstone, UBS, Eric Yuan, DisruptAD (formerly $350
Valuation: $16,500 Late VC
2021 ADQ), Beacon Holding, Phoenix Rising Investments
Jun $50
IIFL Seed Ventures Fund, Maitri Edtech Valuation: $16,500 Series F
2021
Sep $150
Mirae Asset, Asmaan Ventures, ARK Ncore Valuation: $16,900 Series F
2021
Time Capital, IIFL, Verition Fund Management,
Oct $296
Edelweiss, XN Exponent Holding, Oxshott Capital Series F
2021 Valuation: $18,000
Partners
Nov Epic!, Chan Zuckerberg Initiative, GenGlobal Bright $400
Valuation: $18.500 Series F
2021 Corp
Mar Vitruvian Partners, BlackRock, Byju Raveendran, $800
Valuation: $22,000 Late VC
2022 Sumeru Venture

Note: VC = venture capital

Source: Created by the case authors from “BYJU’S Funding,” BYJU’S, accessed July 12, 2022,
https://app.dealroom.co/companies/byju_s.
Page 14 W33972

EXHIBIT 7: SCHOOL MARKET IN INDIA

Metric Year Data

Children out of school, primary, female 2020 2,437,635
Children out of school, primary, male 2020 4,108,190
Population ages 0–14 (% of total population) 2020 26.16
Population ages 15–64 (% of total population) 2020 67.27
Pupil-teacher ratio, primary 2017 32.75
School enrollment, pre-primary (% gross) 2020 61.09
School enrollment, primary (% gross) 2020 99.9
School enrollment, secondary (% gross) 2020 75.48
School enrollment, tertiary (% gross) 2020 29.44
Trained teachers in primary education (% of total teachers) 2020 77.75

Source: Created by authors using “Education”, The World Bank, accessed July 12, 2022, https://data.worldbank.org/indicator.