Byju’s business model revolves around educational technology, m-learning services and distance education. Think and Learn Private ltd is the brand name associated with Byju’s. Byju’s is one of the most valued educational technologies of the world.
Education is one of the necessities of a common man around the world. It helps humans to reach their goal. There are many ways of learning and teaching. In order to make the learning and the teaching process more effective there are some applications and tools that were made available in the market to educate them online. Byju’s initiated the advancement in the education system that helps students to learn better in a more customized manner, it is rated as one of the best online educational learning paltform.
This post will help you to know more about the business model of Byju’s and their revolution in the online education system.
Raveendran Byju launched Byju’s in 2006. The main aim is to transform the learning process into a more entertaining one.
After returning from the UK, Raveendran Byju helped some of his friends to clear the aptitude exam. And this made him teaching online for students to clear exams. Byju’s was treated as a mentor and inspired him more to do for the society with his educational knowlegde. Using V-SAT in 2009, Byju’s started uploading videos. And it reached more than 45 cities in the country.
Due to this Byju’s received more than 1000 requests to coach them online. He then reached out to a more wider auidence. Byju’s then understood the need for the enhanced teaching and learning conceptuals. Due to the huge attention and popularity he gained from the Byju’s class, he decided to become a full-time tutor and quit his job.
Launch of Byju’s Mobile Application
Byju’s moved to deliver all his lectures and teaching materials in Online form. Byju thought teaching through online is the most convenient medium. Children looked at this app as a solution for their learning queries.
The renewal rate for the subscription of the mobile app is also high and it is around 90%. And the statistics says that students spend more than 1 hour every day on the app.
With a net worth of 5.4 billion Byju’s mobile app stands as the most valuable Ed-Tech mobile application and company.
Goals of Byju
Mr. Byju was always clear in his goal of achieving in the field of Education and teaching. His process is always connecting with students,sharing his experience and helping them. In order to fill the gaps in the education system he initiated this Byju’s platform. He provided students more enhanced teaching material and education.
This application is not focused only for brilliant and bright students, it helps to motivate students who are not interested in studies. Byju’s improves the understanding of subjects more by teaching from the basics.
Challenges faced by Byju’s
The early time was not too easy for the Byju’s team. They faced many threats. There are many competitor platforms and applications that worked with the same concept as Byju’s in 2015. Their confidence in the quality of service never hesitated to move backwards. Raveendran Byju knew that his presentation and material will gain more students attention. Basics made available for free through his freemium based model. This gained students attention and the quality of the service that is provided by Byju’s.
This results in more number of students subscribing to the premium learning services.
Success of Byju’s Business Model
The success of Byju’s lies in factors like high quality of teaching material and the presenting way. The connection that is built with the students is the main success of Byju’s. Students treated Byju’s as their most enjoyable medium of learning. Video lectures on the application created more impact on students and they liked the way the video’s were presented.
Other than video format it also produces teaching in the form of live-cation, quizzes and animation based learning.
Byju’s expands its customer base by creating the platform in different languages, in the goal of providing knowledge to more students through their platform. At present the application is in English and Hindi. They are in the progress of involving more regional languages.
For every student, the app gives more specific training and provides personalization of the study material. By using the grasping power and aptitude it makes the training material for the students. This helps them to prepare better for their exam.
In 2017 it came up with 2 other manifestations, Byju’s – Parent App and Byju’s – Math App
How Byju’s Make Money?
Freemium is the business model used by Byju’s, which means the basic content is available for free of use and then the advanced concept needs a subscription. This attracts more students to get into this application. Once they get satisfied from the free version they get moved to the subscription automatically.
This business model is similar to the concept of sample sales. Initially it allows students to learn from the basic or sample video and if they like they will purchase all the study videos through subscription.
In 2018, Byju’s earned Rs.490 Cr and in the year 2019 it earned Rs. 1341 Cr. The entire education system is turned into online form due to the impact of Coronavirus. During this pandemic situation Byju’s become student’s one of the sought-after platforms. In 2020 the growth increased to 200%.
The primary revenue system of Byju’s is Subscription fees. Byju’s also launched products like Online tutoring to boost revenue.
Byju’s International Expansion
Currently Byju’s is a part of Indian Market and this year it is planning to become a part of America, European, African and other markets. OSMO – an US based education game creator acquired by Byju’s for 120 Million dollars in the year 2019. Using the OSMO’s customers it begins its journey in the US market.
Currently Byju’s is collaborating with Disney for expansion and promotion of its services aiming at 6 to 8 year kids. Byju’s pays for many Disney characters by using them to teach science and Math to kids. This investment helped them in expanding its customers.
In the education field Byju’s has transformed the market. It introduced a new revolution in the teaching methods and educational system. The business model is extremely profitable. This transformed the company’s worth to Rs. 3000 Crore. This business model will help companies who are looking for planning their business towards online education.
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