Bye-ju’s: A COMPANY

REVIVAL CHALLENGE
Introduction
Remember BYJU'S? The education app everyone loved, with funny mascots and fancy
tech? Well, things aren't so caffeinated anymore. The company has been criticized for
aggressive sales tactics, questionable financial practices, ill-timed acquisitions, toxic work
culture, and allegations of negligent financial control. Millions of students who rely on
BYJU'S for learning would face educational disruptions. Teachers and employees
associated with the platform could experience job losses. Let’s look for solutions to support
BYJU'S in regaining its former status as an educational leader and overcoming its current
challenges.

Background
Founded in 2011 by Byju Raveendran, BYJU’S quickly became a leading global ed-tech
company headquartered in Bangalore, India. The company, which was once valued at $22
billion, has seen its valuation plummet to $220 million as of January 2024, showing a more
than 99% decline.
The company has faced several challenges in recent years, including:
Increased competition: The edtech market is becoming increasingly competitive, with
new players entering the market and established players expanding their offerings.
Rising costs: BYJU’S has invested heavily in acquisitions and marketing, which has led
to increasing costs.
Declining profitability: The company's profitability has dropped recently, raising
concerns about its financial sustainability. Byju’s losses widened nearly 20 times.
Debt burden: BYJU’S has a significant debt burden, limiting its ability to invest in growth.
It skipped an interest payment of around $40 million on a $1.2-billion loan, making it the
only Indian start-up to default on a US-dollar loan.
The company has also been involved in controversies, including high-profile board member
departures, extensive layoffs, unpaid vendors, a lawsuit against a US-based investment
firm, and investigations by the Enforcement Directorate and the Ministry of Corporate
Affairs, all pointing to significant governance issues. The company is now at a critical
juncture and needs to take decisive action to turn things around.

Problem Statement
Byju’s founder, Raveendran, has hired you as a consultant to advise the company in
addressing the following key areas:
Areas of Failure: The company's decline can be attributed to various factors, including
financial mismanagement, corporate governance issues, and a shift from its core
educational focus. Thoroughly examine these areas to understand the root causes of Byju’s
decline.

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Mergers & Acquisitions: BYJU'S has acquired several companies like Aakash, White Hat Jr.,
Toppr, etc. Evaluate the outcomes of these acquisitions and provide insights into the future
management strategies that BYJU'S should adopt for these companies.
Strategies for Revival: BYJU’S needs to reassess its business strategies and refocus on its
core mission of providing high-quality education.
Path to Revival: Identify and understand the root causes of the company's decline and
suggest a comprehensive 5-year roadmap for revival.
Do a comprehensive analysis of BYJU’S operations, strategic direction, and organizational
effectiveness and develop a roadmap for its revival and long-term sustainability.
Hint: You may follow the McKinsey 7S framework to analyze the effectiveness of the
organization by assessing it in 7 parameters: Structures, Strategy, Skills, Systems, Shared
Values, Style, and Staff.

Expected Deliverables
The presentation should contain a maximum of 20 slides, excluding the appendix and
the first and last slides.
References from the internet must be cited at the bottom of the slide in the form of
numerical links (for example, [1] [2] [3]).
Any guesstimates and calculations must be clearly shown and included in the appendix.

Timeline
Round 1 (Presentation Submission): 11:59 PM, 5th April 2024
Round 2 (Top 8 teams, Final Presentation): 6th April 2024

Guidelines
A form for uploading the presentation will be sent to the team leaders.
The exact time and venue for Round 2 will be communicated to the selected teams after
the result declaration of Round 1.

Evaluation Metric
The presentation will be judged on these 4 parameters:
1. Coherency of Ideas (30%)
2. Innovation and Creativity (30%)
3. Research Backing (30%)
4. Overall Aesthetics (10%)

2 iitkconsult.org