Due to overwhelming valuation, horrible sales tactics and increasingly equivalent good material available for free on YouTube etc, do you think that Byjus, Unacademy, whitehatjr, Vedantu etc and likes of it will survive till 2030?
most likely they’ll find a profitable BU, and stick to it. Like Akash is profitable, they’ll explore till they hit something solid, and kind of maintain valuation.
i guess the days of exponential growth are over in edtech.
Byjus paid 30,000 Cr for 200 odd coaching centers. Aakash’s net operating margins are around 12-13% I think. So they paid 30,000 Cr for for total profits of Aakash which is 300 Cr. That is already 100x+ PE ratio. For a coaching center. There are already rumours that they haven’t fully paid for this deal. Byus has raised funding but they have a shitload of term loans and debt where they have to pay interest in a rising rate scenario. This cant be done with Aakash’s profits. This is similar to the stupid Thyrocare acquisition. The promoters of these traditional businesses were smart to sell at peak to startup founders who have zero sense of financials/balance sheet, or how a business is run. They only understand valuation inflation and fundraise, and that won’t be enough.
@Scrooge_McDuck 🙏, i wasn’t aware of the economics of the Akash<>Byjus deal. Thanks for pointing it out.
They way they are sponsoring and after AI mentors, they will be over by 2025
They will do good because of this only truth -
Parents perceive low cost or free products as low quality, incomplete and low prestige.
Prestige matters to parents to feel belonged in the society.
Parents pay from their pocket so it's their decision.
Not a lot of parents are paying unfortunately. Have you personally seen anyone who considers their child studying with Byjus or Unacademy as prestigious? It is the army of salespeople selling plans and loans and duping people lower in the income stream and duping them into taking loans that gives them the numbers to get a fundraise. There have been tonnes of articles on this. Some have even mentioned that they are themselves paying the loans from their own funds to keep ip the facade of sales numbers.
chatgpt will replace them or something similar, rip byjus scam
Or they will use it to improve their products
Any Goss on the financial health of Edtech firms like LEAD, Unacademy? I hear there's one more round of layoffs coming.
Though in all probability, what you've already heard is true.
I don't understand, the sector that makes sureshot money on small and medium scale is continuously failing on pan India scale.
A small IIT coaching in Patna with 2 centres generates profit in crores but these Byjus and Unacademy are not...
I have been on this journey for a long time now. Lots of failure comes with loads of learning. Each step or initiative I took has helped me grow as a person, the business guy (ed-tech, media space), and also in terms of technicalities (f...
