Byju’s is a popular company in India, recognized as the most renowned education technology company. This educational brand changed the education industry forever. From studying in traditional coaching institutions to e-learning, Byju’s has brought about a change in the industry.
Byjus was started by Byjus Raveendran, and he started this company with simple video lessons on video streaming platforms. After getting a positive response from the viewers, Byju’s started his own company in 2011 with the name Byju’s. This e-learning platform has become a global success with millions of students, professional staff, and a market valuation.
From studying for competitive exams to government job exam preparation, Byju’s has gained success in the industry in less than five years. But that was the peak era of Byju’s because many players jumped into this industry. At present, many people have this question about how Byjus is doing and how they make money now.
To understand, let’s have a look at Byju’s business model, their revenue stream, why their model still works, and its advantages.
Byju’s Business Model Explained
Byju’s uses a freemium business model, which means that students can access basic lessons on their platform and website. However, if students want to access advanced questions or personalized services, then they are required to upgrade to a paid plan.
Currently, Byjus is focusing on K-12 students, which means that they teach students from kindergarten to class 12th. On the other hand, Byju’s is still offering study plans for competitive exams such as IIT-JEE, NEET, CAT, IAS, GRE, and GMAT.
Byju’s is making money in three ways: engaging learning content, personalized learning paths, and premium upgrades. No doubt that free access helps in attracting students, but the real value comes from the paid subscriptions. This approach has allowed Byju’s to reach a massive audience, both in India and abroad.
How does Byju’s make money? – Revenue Streams of Byjus
Byju’s makes money from teaching students. However, Byju’s has diversified its income even in teaching. Seven different methods are currently used by Byju’s to make money. Let’s have a look:
1. Paid Subscriptions
Byju’s gets the biggest share of its revenue from the paid subscription plans, where students get paid learning classes. Byjus offers annual and multi-year subscription, which offers access to in-depth video lessons, practice tests and quizzes, and live classes with doubt-clearing sessions. In this plan, Byju’s covers the entire syllabus in a structured way. To make the plans seem affordable, Byju’s also offers EMI options so it can target a broad audience.
2. Learning Tablets
A couple of years ago, Byju’s started selling learning tablets that come preloaded with study materials. The tablets help students access lessons without an internet connection; meanwhile, these tablets help in generating a big revenue for the organisation.
3. Competitive Exam Courses
Competitive exam coaching centre is a multi-billion-dollar industry in India, and most institutes want to target a mass audience through e-learning platforms. Byju’s is doing the same in this industry, and they help in preparation for IIT-JEE, NEET, CAT, IAS, and also international exams like GRE and GMAT. With the expert mentorship, mock test, and detailed solutions, students get quality education, and Byju’s makes money in exchange.
4. Byju’s Tuition Centres
Recently, Byju’s started physical tuition centres in different cities. These centres combine classroom teaching with digital tools. The hybrid model helps the company reach families who prefer traditional face-to-face learning but still want the benefits of technology.
5. Acquisitions and Expansion
Byju’s has acquired many educational institutes to grow in the education industry and to reduce competition. The companies Byjus acquired are WhiteHat Jr for coding lessons for children, Aakash Institute for medical and engineering entrance exam preparation, Great Learning for upskilling and professional education, and lastly Toppr for K-12 learning support.
6. Partnerships with Schools
To gain exposure, Byju’s introduced digital content to schools through partnerships or affiliations at a lower cost. At the same time, Byju’s got exposure to potential enrollers. With this, Byju’s not only made money, but also showed their services to many who may join in the future.
7. Global Expansion
After achieving success in the Indian education industry, Byju’s expanded its services to international markets like the US, the Middle East, and Southeast Asia with localized content and a global learning program. This strategy helped Byju’s in earning from international students.
How is the Byju’s Model This Successful? – Key Reasons
Byju’s has focused on something that many other e-learning platforms were missing since the start. Below are some key things that Byju’s did right and became a top name:
- Strong reputation: It is trusted as a reliable education platform.
- Interactive content: Videos use animations and storytelling, which keep students engaged.
- Data-driven approach: Lessons are adjusted based on how a student performs.
- Heavy marketing: Byju’s spends a lot on ads, sponsorships, and celebrity endorsements to stay visible.
- Course variety: From school students to working professionals, it offers something for everyone.
Besides these factors, there is a luck factor as well. Around 2016, Jio introduced free internet, and everyone in India started going online. E-learning has become possible for even those students who live in rural areas.
Advantages of Byju’s Business Model
1. Scalability
Digital courses have the potential to reach a mass audience, and freemium business models always work perfectly to attract more and more students.
2. Steady Income
Subscription models help in earning a steady income. Byju’s offered annual plans, which helped them get a steady income for an entire year of working and extra money to improve.
3. Multiple Income Sources
Having multiple income sources in e-learning is always advantageous, and this worked in favour of Byju’s and many other e-learning platforms.
4. Hybrid Presence
With a hybrid business model, it becomes easier to build credibility, offer quality education, and much more. Students can visit a physical location for better education, and people in remote areas can use e-learning platforms.
Challenges Byju’s Faces
Despite its success, Byju’s has some hurdles:
- High expenses – Marketing campaigns and acquisitions cost billions.
- Strong competition – Other platforms like Vedantu, Unacademy, and traditional coaching centers offer alternatives.
- Expensive subscriptions – Many families find the plans costly.
These are some major issues that Byju’s has faced, and they are currently dealing with high competition. If someone is willing to enter the e-learning industry, then it would be great to work on credibility first, then revenue.