Why is Byjuâs Failing? Reasons behind Byjuâs Downfall
Byjuâs is the first Indian company to sponsor the FIFA 2022 World Cup officially. Byjuâs valuation is 22 billion dollars, But  Byjuâs revenue last year was  2400 crores and their loss was 4600 crores.  Now the question is, How did Byjuâs have a loss of 4600 crores? What are the reasons behind Byjuâs loss? And Why is Byjuâs Failing?
Two years ago during COVID, everyone wanted to learn to code, Youâve probably seen a lot of ads by White Hat Junior saying âLearn to code and change the world!â, âNow every kid in India learns to code, build apps, and change the world.â How children aged 6-7 are lending jobs at Google and giving talks at TED.
I have already told you about the Whitehat Jr. Scam in this âByjus Is A Scam?â
Many experts believe that the trend of coding has ended now that COVID is over. So, itâs better for Byjuâs to shut down White Hat Junior, But the founders of Byjuâs donât want to do that they said that White Hat Junior might be an underperformer, but it has had a huge impact on Indian teachers and students.
Now, You can see this in the White Heart Junior report. Apart from customers, many employees are leaving White Hat Junior. A few months ago, around 800 employees resigned from White Hat Junior.
Another factor for the loss is that the classes White Hat Junior offers are one-on-one sessions and theyâre expensive. This is why many middle-class Indian parents canât afford those classes. Hence, itâs difficult for the company to win many customers in India.
This is why the founders of Byjuâs want to expand White Hat Junior to other markets. To launch it in a different country, the company needs more money. This is why White Hat Junior is responsible for 26% of Byjuâs losses.
This is why White Hat Junior is the biggest loss-making company in Byjuâs.
You can see their brand ambassadors as big athletes & celebs like Neeraj Chopra, P.V. Sindhu, and Shah Rukh khan. Byjuâs has brand deals with the Indian Cricket team and the FIFA World Cup. As you can see, these are big events involving high-profile players. To sign them all as brand ambassadors, Byjuâs had to pay a lot of money. Byjuâs spent more than Rs 2,000 crores on marketing last year. Byjuâs 32% of spending was for marketing last year.
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