After a delay of few months, BYJUs at last revealed their annual audit report and annual return records for 2020-21. The revenue earned was Rs 2428 crores while the loss was about Rs 4588 crores. Apparently, the loss is 15 times more than the previous year’s losses which were approximately 300 crores.
BYJUS Founder’s Recorded Statement
Founder of BYJUs, Byju Raveendran the founder of the multinational EdTech company- Byju Raveendran, declared in an interview,
“The delays in audit were in the beginning were on account of multiple accessions; later on, the revenue recognition model was changed by the auditors so that lead to re-working the revenues.”
Defrauding Indian Parents
When they were burdened with considerable business loans and financial losses, BYJUs turned towards immoral means to reach their monetary commitments. Many reports point towards them tricking the middle-class parents as they usually focus on getting their children the best possible education and equipment they can afford. The parents invested in their tricks without the knowledge that they would have to keep paying interests, EMI’s etc. and when they failed to do this, BYJUs would block them, not give them the promised materials as they couldn’t pay and go on to trick other parents to register with them or buy plans for their children.
Who’s Responsible for BYJUS Losses?
Before the pandemic started organizations worked offline, but during the pandemic the world saw a technological shift which lead to online mode of classes and entirety of the education was online for the Covid-19 batches, many students had to be promoted because taking offline exams weren’t possible and educational institutions weren’t well equipped to conduct online exams either, and not all students could give their online exams because of the non-availability of networks in certain regions and many not having mobile phones or laptops for the Examinations.
BYJUS was escalating before the pandemic and during the pandemic they thought modes will remain online hence they focused on market strategies for online work, later with the declining pandemic and quarantines being over everyone shifted to offline mode again. BYJUs couldn’t survive this and had major spending in the buyouts. Which led them to incur losses which were extremely high, and then they mistreated their clients i.e., the parents and children and laid off approximately 2500 employees, which is a huge number and a very harsh step towards the employees as inflation is increasing.
In 2022, many EdTech organizations have suffered from the loss of clientele after the commencement of offline classes. Since July of this year, plethora of EdTech companies like Vedantu and Unacademy have been laying off their employees.
On the other side, Byjus users have been protesting about forceful sales tactics and its effects on learning abilities. however, a few of its employees too publicly talked of its high-pressure deadlines and practices that’s turning out to be almost reprobate to Indian parents who entrust a lot of value on their children’s education.
This year, the EdTech businesses like Unacademy, Vedantu, Frontrow, Lido, and others have combined fired thousands of workers. Following the same, another EdTech company has sent pink slips to their employees.
The EdTech company is under the radar of the NCPCR – National Commission for Protection of Child Rights.
The NCPCR said that the organization is targeting the new generation learners and if the company continues to use these means to get clientele, then they would take a step against the company, even if it meant filing a complaint against them. The CEO Byju was summoned by the NCPCR and they stated if he fails to appear without any legal priorities then he will surely be looked into.
The commission also stated that Byjus is also tricking customers into entering loan-based agreements to buy the courses which aren’t refundable even if the customer wishes to get a refund.
The company has faced scrutiny over the work-environment which forces employees to work rigorously and have unbelievable standards for sales target and if they fail to achieve the targets it also states the scary consequences that they might face, which has led employees to come forward and speak up about the organization and its schemes for looting the public.
Another interesting event that made Byjus employees and clients mad was during the laying off of the employees the company roped in LIONEL MESSI (yes, the same footballer who was a great contributor to leading the Argentina team to win the FIFA world cup). The employees were enraged as at least 5% of them were laid off but the organization had the resources to scout one of the world’s most famous and expensive athlete for being their brand ambassador.
