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In this blog, I am going to tell you How Byju’s Earns Money ?
What is Byju’s?
Byju’s is an online video-based learning platform that provides educational content to school students from Kindergarten to class 12. It also offers courses for various entrance examinations in India such as JEE Main and Advanced, NEET, CAT, CSE (Civil Services) as well as international entrance exams like GRE and GMAT.
Story Behind Byju’s –
It all started with Byju Raveendran, the founder of Byju’s app. He was a mechanical engineer by profession and was working with a UK based shipping company. While he was on holiday, his friend who was working for an IT firm, asked Byju to help him with CAT preparations. Both of them appeared for the exam in 2004 and Byju scored 100 percentile. However, he didn’t join any IIM as he preferred his job.
He, however, appeared for CAT the next year along with those friends who he helped. This time again, he scored 100 percentile. Then he started by teaching a small group of students in 2006 and that’s how the foundation was laid Inspiring indeed.
Before diving into the business model of Byju’s, there are some key aspects that we need to be aware of.
It is a brand of Think and Learn Private Ltd which is an Educational technology (ed-tech) company founded by Raveendran and his team in 2011.
BYJU’S The Learning App was launched in 2015.
Within the first 3 months since its launch, the app was downloaded by more than 2 million students thanks to their aggressive marketing.
The first initial investment was Rs 2 Lakhs.
Since then, the company has raised $1.4B funding in over 14 rounds including the $50 million from Chan Zuckerberg Initiative (CZI).
Naturally, since the company has got so many investors and the funds, it cannot provide the courses for free. You can download the app for free but you need to pay for the course you wish to study.
Business Model of Byju’s – How Byju’s Earns Money?
Byju’s follows a freemium model which is a pricing strategy that offers a product for free with extra money being charged for utilizing additional features or services. In this case, the free access to content is limited to 15 days after the registration.
their main source of revenue is the subscription amount which is paid by the students for learning. As of now, They have nearly 3 million paid subscribers and over 40 million registered users.
There are other sources of revenue as well. They offer offline coaching and career counseling. The online courses are also offered in the offline model which costs around Rs 80,000.
That is how Byju’s earns money. The current revenue of this startup is above $8 billion.
In a nutshell, this startup earns from what they teach and what they offer.
Thanks for reading.
This blog is written by Yash Mandwal .
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