BYJU's struggle to keep up with schools opening and hybrid normal
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After two years of the pandemic, schools and colleges in India are slowly returning to in-person classes in what is being termed as 'hybrid normal'. Many ed-tech platforms like BYJU's are seeing a dip in demand for online learning.
As people are choosing to go with offline classes when it is available, BYJU's is struggling to keep up with the change. Industry sources say the global expansion plans of the iconic startup haven't reached the expected scale. Employees are also disappointed due to changes the company is making to survive.
One of the main ventures of the ed-tech company 'WhiteHat Jr' is in trouble from all ends. The online coding platform was bought in July 2020 for $300 million but only earned Rs 12.34 crore and Rs. 11.07 crore in Australia and UK. In the financial year 2021, the company suffered a loss of Rs. 1,690 crore. The expenses continued to rise and reach Rs. 2,175 crore in the same period.
The plan was to hire teachers on a contractual basis and not a full-time basis. The company is expecting some part-timers to choose not to return to work. But, around 3,000 sales and support employees are asked to report to Mumbai to Gurugram offices from April 18. The school division, the flagship coding school, launched last year targetting 10 lakh school students has been shut down.
WhiteHat Jr's programmes offering immersive learning opportunities for music aspirants are also not seeing desired results. BYJU's is taking steps to stay with the changing times and recently launched 80 physical tuition centres. The plan is to have 500 centres in 200 cities by 2022.
The company spokesperson said that BYJU's is expecting to grow through both organic and inorganic routes. "Our products are global, localised to every country, and personalised to every learner." India will continue to be a major focal point.
The company believes that the future of education will bring the best of the online and offline world together. In the recent past, BYJU's has acquired several big firms like Aakash Educational Services Ltd, Great Learning, Epic!, US-based Osmo, and TutorVista.