Educational technology (EdTech) refers to the implementation of software and computer hardware to enhance the teaching-learning system. EdTech focuses on tailoring a curriculum based on students’ learning abilities. This supports self-paced studying. And it ensures students gain a solid understanding of thought concepts.
In 2019, a report from Statista pinned the e-learning market value at $200 billion. It also forecasts this value to reach $400 billion in 2029. There are about 35 EdTech unicorns in this space. Yet, one of them stands out with its impressive services and business model.
Byju’s is a global online tutoring platform offering interactive courses across subjects like Coding, Math, and English. It provides an immersive learning experience with conceptual lessons in interactive formats. This includes video and audio tutorials.
Byju’s, India's biggest Edtech company, had a revenue of $800 million in 2021. This huge success revolves around the e-learning software giant’s business model. Read on to find out about Byju"s business model
Byju’s Business Model: How the EdTech Unicorn Serves Over 150 Million Learners
Byju’s development stems from a passion for teaching and preparing students for competitive exams. This zeal and dedicated effort was Byju Raveendran’s. He's an engineer, coaching teacher, and the CEO of the EdTech platform.
Since 2006, Byju has designed Math lessons for learners and assisted peers in studying for exams. For instance, he provided video tutorials via V-SAT, reaching over 45 cities in one year. This viral educational content led to 1,200 student requests for online coaching. As Byju’s audience grew, so did his dedicated effort to advance e-learning software. This resulted in the first Byju’s app launch in 2015. It had over 5.5 million downloads in one single year.
The Byju business model integrates personalized learning solutions for high-quality education. The platform weaves interactive lessons in a flexible, self-paced learning schedule that students can handle.
This is crucial to the success of the Byju business model. Byju’s major features include live tutorials, live classes, an e-library, and more.
An Overview of Byju’s Services
Byju target users are young learners aged 4-18 years. These pupils often tackle various courses and exams, creating a need for robust learning resources. There are also training materials for people above K-12. This prepares them for entrance exams like NEET, JEE, and more.
Furthermore, the platform’s target market of over 250 million K-12 students calls for unique e-learning software system and services. Let’s consider Byju’s core EdTech solutions.
Data shows that online learning improves retention rate by 25-60 percent compared to classroom training, which falls at 8-10 percent. But combining both methods births hybrid learning. This is a comprehensive teaching-learning system that makes studying effective and flexible.
For instance, Byju’s version of the two-teacher model involves live online and in-person training. A group of 20 students can follow explanations from an expert teacher online. Afterwards, a second tutor assists them with challenging exercises, providing necessary solutions.
This two-teacher model extends personalized teaching to a small class of learners, improving engagement with lesson content. Also, it frees up time for teachers to assess and track learning progress.
Self-paced Math Classes
Math is a crucial subject, helping pupils develop logical reasoning and creative thinking skills. It’s a cornerstone of engineering and technology, drivers of innovation in our modern society.
Byju’s Math curriculum covers several topics for students in grades 1-8. It implements projects, worksheets, and apps for fun and engaging learning. For instance, K-4 pupils can access quizzes and interactive games involving practical Math concepts.
Byju has more than 42,000 projects and 400,000 classes, ensuring young minds at different skill levels can build up their Math abilities. Furthermore, it offers bite-sized lessons in classes spanning one hour.
Book reading helps improve language development and interpersonal skills. Byju’s Epic features a robust digital library with more than 40,000 ebooks, audiobooks, and interactive learning videos.
Learners can read books in a content format that best suits them. Plus, learners earn badges at different stages of their reading journey. Byju’s Epic serves as a safe, kid-friendly avenue for learning, with one million tutors utilizing it in classrooms.
Byju’s Epic has different categories of books like pet stories and nonfiction. This allows tutors to access rich reading materials specific to their teaching objectives.
Online coding tutorials are often prepared for graduates, career starters, or experienced programmers. However, Byju takes coding to the grassroots, helping youngsters learn programming basics.
The platform acquired Tynker, a creative coding app. Tynker has over 60 million learners and 100,000 partner schools. This helps Byju's make STEM training for kids accessible worldwide.
The platform offers interactive, game-like and self-paced programming lessons. The courses contain quizzes, exercises, and projects for a hands-on experience. There are over 60 million students and 100,000 schools utilizing Tynker for coding.
Byju has three Tynker apps: Tynker Junior, Tynker, and Mod Creator. This ensures pupils can find a suitable avenue to learn to code regardless of age and skill level.
Merger and acquisition (M&A) are integral to Byju’s business model success. The EdTech unicorn retook this financial path to drive its goal of play-based learning. The company purchased Osmo, a designer of educational games.
Byju’s Osmo centers around teaching creative subjects like spelling, puzzles, drawing, business, coding, and Math. For instance, students can get guidance via video lessons for solving puzzles with tangible pieces.
Furthermore, tutors in over 50,000 classrooms use Osmo for practical learning due to its interactive learning approach.
Two Key Ingredients to Byju’s Success: How the Platform Builds a Successful Business
Byju’s business model also has some crucial factors that make it successful in the EdTech space. These include:
Byju’s Revenue Model
Byju’s business incorporates a subscription-based model. This generates recurring revenue as customers periodically pay a fee for exclusive access to specific products or services.
However, it offers a 7-15 day free trial allowing users to explore its services and determine if it can advance their education. Byju's subscription fee is about $10 and $100 per month and annum, respectively. The platform’s in-person classroom program is another crucial revenue spring.
Furthermore, Byju’s Osmo hardware products contribute significantly to its revenue growth. Osmo has about 1.3 million paying users and 30 million registered students.
Investment, Partnership, and Acquisition
In 2020, the global K-12 e-learning market value was $720 million. This high-value educational segment breeds intense competition, requiring businesses to expand. Byju’s utilizes investment/partnership, and acquisition to do this successfully.
The EdTech unicorn received a $50 million investment funding from venture capitals. This included the Times Internet, Sofina, Sequoia Capital, and Lightspeed Ventures. Other multibillion-dollar commitments have also rolled in from the Chan-Zuckerberg initiative and Blackrock, amongst other investment partners.
Byju’s partnership with innovative companies stretches outside funding and investment space. The company also works with media and entertainment giants like Disney to offer interactive content and playful learning. Furthermore, Byju’s collaborates with FinTech companies like PayU and Paytm for smooth payment and subscription.
Byju’s business model also utilizes merger and acquisition, a strategy that allows it to add value to its e-learning services. Byju’s acquired Epic, a US digital reading platform, for $500 million. This connects it to a large audience of 50 million kids, enabling tap into international EdTech industries.
Here’s a list of other Byju’s popular business acquisitions:
- Tynker (price: $200 million)
- Osmo (price: $120 million)
- WhiteHat Jr (price: $300 million)
Success by the Numbers: Key Performance Metrics
Byju’s is the biggest Indian EdTech platform and a contender in the global e-learning industry. The platform has been expanding, buying businesses and building innovative services to improve e-learning.
This is significant for growth. However, there are crucial factors for determining Byju’s business model success. Let’s consider some of them, including:
- Market valuation ($18 billion)
- Byju's subscription renewal rate (86 percent)
- Number of users (40 million), number of annual paid subscribers (3 million)
Essential Lessons from Byju’s Business Model to Boost Your Startup Growth
Data reveals that there are approximately 305 million startups developed annually. 10 percent fail in their first year, while almost 70 percent wind up operations within two to five years. Several factors result in this, but a weak business model is a major consideration.
Some crucial lessons from Byju’s business model can help you grow your business. Here is a highlight of three valuable business development tips:
Buildd a startup with tech
Emerging businesses often focus all their resources on developing the next innovative tech. This occurs without any clear problem statement or target market for product/service sales.
Often, this leads to a deadlock as they can’t find customers to buy their solutions. You can mitigate this by building a startup with tech, not the other way round. This fast tracks your business progress, helping you concentrate squarely on identifying and solving customer pain points.
Remember, Byju’s saw a need for massive provision of simple educational resources. He then used tech to empower his idea.
Focus on one problem
Entrepreneurs are often on their toes trying to develop a one-size-fits-all product. This is challenging for startups as it requires intense effort and massive financing. It’s easier to focus on the core user problems and build a solution for them.
You can then expand your business after securing profit and a solid customer base. For instance, Byju’s initially delivered simple and interactive online video lessons. The company expanded, buying and merging with businesses for robust e-learning services.
Help users, sell products
A frictionless way to improve sales is to offer help, and then sell your commodity. For instance, Byju’s provides a 60-minute free demo class where students can engage with top teachers on specific subjects.
This free service helps parents explore the platform. This improves lead conversion as customers can test Byju’s product at no cost, prompting them to make a subscription.
Byju's business model can help you advance your startup operations. But you need digital marketing to connect your target audience to your products. Here’s our actionable SEO strategy for getting one million monthly traffic and a breakdown of Netflix's marketing strategy.