BLITZSCALING of

GROUP – 10, SECTION A

PGPM 2022-23
 GROWTH OF BYJUS OVER A PERIOD OF TIME

Raised funding
Launched from BOND
BYJU'S Math
App for kids Became the
Welcomed more than and BYJU'S world’s most
3,00,000 active users Parent Connect valuable ed-tech
BYJU officially be- app startup with a val-
gan operations “Best Self Improve- uation of $10.5 bn
ment” app award at
Special Focus on 2015 Google Play India rat- 2017
K12 ing

Launched BYJU'S BYJU'S app be-

2011 2016
— The Learning
App
came a business
case at Harvard 2020
First Asian company to Business School
receive investment
2019: BYJU replaces OPPO as the official sponsor from Chan Zuckerberg Partnered with
of the Indian Cricket Team Initiative SRK

2020: Signed billion-dollar deal to acquire Aakash

Conditions of Blitzscaling and How does BYJU'S fit in it?

The face of Uncertainty

BYJU'S operates in the ed-tech sector, which is an uncertain market.
1 It is a market of seemingly limitless possibility, yet one built largely on the uncertain
foundation of the Internet. This makes it pretty much impossible to know which sig-
nificant companies or market trends will emerge. Edtech is tantalizingly promising
and completely unpredictable.

Prioritizing Speed over Efficiency

Ed-tech competition is tightening. The market is overheated with startups and ven-
2 ture capital. More than $20 billion were invested in Edtech companies in 2021, in
search of the next big thing in education. Startup founders feel pressure from in-
vestors to grow their companies quickly so that they can have returns on their in-
vestments within a short period of time.
 Did BYJU'S Blitzscale?
The answer is YES

BYJU'S has such strength that equity fund houses from all over
the world, including China, Canada, the United States, South
Africa, and India, have invested a staggering $4.05 billion in it
over the previous 10 years. And what did it accomplish with such
a big sum of money? — Blitzscale!

 Since 2020, BYJU'S has raised $3.07 Billion from investors

 During the same time, BYJU'S acquired 9 other companies,
spending over $2.5 Billion
 This means that as much as 82% of the funds gathered from
investors was spent to acquire other companies
INNOVATIVE PRODUCTS OFFERED BY BYJU'S
BYJU'S - Acquisitions
Company Value
January Vidyartha - A customized learning guidance platform for K8-K12 students $6.71 million
2017
January Osmo - Platform offers educational courses with the use of games, videos and other $120 million
2019 materials

August WhiteHat Jr. - Offers online coding classes to school-going students in India and the $300 million
2020 US
January, Aakash Educational Services Ltd. - Helps students get admission to engineering and $1 Billion
2021 medical schools by providing coaching for entrance exams
July, 2021 Epic - California-based reading application that focuses on books, eBooks, learning, $500 million
and educational technology
2021 Scholr, HashLearn, Gradeup, Toppr, Great Learning, Whodat Tech – Various edtech Undisclosed
platforms based in India
September Tynker - US-based coding platform that empowers kids to learning programming $200 million
2021 and code.
December GeoGebra - Austria-based math learning platform that aims to empower math $100 mn
2021 learning and make it easy and interactive.
 Growth in Paid Subscribers
 BYJU'S hired a massive number of engineers to cater to their
plan of Blitzscaling. Subscribers (in Million)
 They have a separate sales team for the northern & southern 5.00
4.50
geographic regions (approx. 600 employees for Karnataka & 4.50
Kerela and 400 for the northern region of Uttar Pradesh and 4.00
other neighboring states).
3.50
 They also increased their number of sales through indoor 3.00
3.00
selling via taking requests on their websites & selling course
upgradation programs. 2.50
2.00
 Their strategy to increase sales was simple on paper but 2.00
difficult to execute in practice, as the parents (potential 1.50 1.20
subscribers) needed conviction to increase the use of mo- 1.00
biles,tablets, and PCs - thereby providing online quality deliv- 0.45
ery of coaching, which was supposedly a better way of edu- 0.50
cation delivery than the traditional way of physical teaching. -
2016 2017 2018 2019 2020
 Revenue Growth
Revenue (in Cr.) In FY20, BYJU'S reported revenue from operations of
3,000 Rs 2381 crore, up 82.31% from Rs 1306 crore in FY19.
75.4% of FY20 revenue came from India & the
2,500 2,381 remaining 24.6% came from the rest of the world.

2,000 BYJU'S saw losses widening from Rs 8.82 crore in

FY19 to Rs 262.1 crore as total expenditure doubled
1,500 1,306 from Rs 1376 crore in FY19 to Rs 3021 in FY20.
1,000
Out of the Rs 2381 crore BYJU'S earned in FY 2020,
500
520 Rs 1675.7 crore came from the sale of tablets and
260 sd cards, Rs 560.6 crore came from the sale of
125
- reference books & Rs 144 crore from tuition and
2016 2017 2018 2019 2020
service fee.
 LEARNING
 BYJU'S was ahead of its time by
launching BYJU'S app in 2015
which was the perfect time to
Your Text Here
capitalize the Digitalization era,
which gained sails in 2016.

PITFALL
Your Text Here  The major growth strategy of
BYJU'S was Inorganic i.e. Acquisi-
tion of ed-tech companies which
were booming in the industry.
Your Text Here
e.g. WhiteHat Jr., Akash, Great
Learning, etc.
 Failed to diversify its operations
in Brick & Mortar classrooms af -
Your Text Here
ter the re-opening of the market
post-COVID(Akash being the ex-
ception).
 Stages of Biltzscaling of BYJU'S

FAMILY TRIBE/ CITY NATION

2008-14 VILLAGE 2018-19 2020-22
01 02 2015-17 03 04

Classroom teaching Mobile application Focus on branding, lots of acquisitions

in 45 locations with launched, received advertisement and of Ed-tech compa-
experienced teach- funding from Chan marketing. nies.
ers. Zuckerberg Initia-
tive. User Base: 3 mn
User Base: 4.5 mn
User Base: 50,000 subscribers
subscribers
students User Base: 3 lacs
subscribers Revenue: 13 bn
Revenue: 23 bn
Revenue: <200 mn
Revenue: approx.
3 bn
Thank you