Schadenfreude’s Concerto №21 : The Fall of Byjus in 3 Acts
Byju’s Downturn: A Marginal Tutor’s Perspective
“Schadenfreude” is a German term that describes the feeling of pleasure or joy derived from someone else’s misfortune or suffering. Essentially, it reflects a somewhat malicious sense of enjoyment at the expense of someone else’s pain.
Recent reports on Byju’s financial struggles and workforce cutbacks have become a common feature in Indian business news. As the ed-tech giant faces challenges, small-time tutors based in India — like myself find an unexpected source of joy in the EdTech giant’s troubles. The ongoing situation, detailed in articles such as the one on MoneyControl, sheds light on the company’s deteriorating workplace amid a significant cash crunch.
Act 1: Prelude — Byju’s Ascendance and the Micro Players’ Struggle (2020–2022)
With the virus from Wuhan hit India in mid-March 2020 , it coincided with a academic session’s closure and the impending start of a new one. As physical classes became unfeasible due to social distancing measures, small tutors, often teaching from the confines of their living rooms, grappled with the challenges of transitioning to online teaching.
The shift to online platforms, marked by the introduction of Zoom and the necessity for digital tools like digital pens and digital boards, proved turbulent for tutors like me who didn’t have resources that major players had. We learnt from YouTube videos — how to use charter the digital territory — from watching digital pens’ reviews to learning how to edit YouTube videos.
As I started to reach out to my students for the upcoming session (2020–21), a recurring theme emerged: Byju’s had already extended discounted online class packages. While adapting to digital training, mastering Zoom, and integrating YouTube into my teaching methods, I encountered headwinds as many students opted for the deep discounted fees provided by Byjus. And I had invested time and energy into cultivating student batches for years.
Act 2: The Wild West — Byju’s Reign and Controversies (2020–2022)
Leveraging their resources, Byju’s swiftly adapted to the online landscape, offering tablets and other incentives to students. Over the next 2 academic sessions from 2020 to 2022, Byju’s made the business environment uncomfortable for micro players like myself through aggressive sales tactics and substantial discounts. Backed by foreign investors ( who in turn were fed by cheap Fed money ) — the EdTech really had a blast during those 2 years. Like a giant vaccum machine — it sucked away prospective clients with their discounted offers. The business publications joyfully celebrated the global rise of this Unicorn, as it acquired EdTech startups worldwide.
Meanwhile drunk on success, Byju’s sister concern, WhiteHat Jr, faced scrutiny for questionable business practices… YouTubers who critiqued these practices were mired in legal complexities.
The competitive landscape resembled the ‘Wild West’ as Byju’s overshadowed and crushed micro players.
Act 3: The Symphony of Schadenfreude — Byju’s Downturn and Micro Players’ Vindication (2022- )
They are calling it a funding winter now — but during the Covid years the Ed Tech were the Kings of All they Surveyed.
For those who felt the brunt of Byju’s dominance, recent news detailing the company’s challenges, as reported by LiveMint, brings a sense of relief.
As Byju’s grapples with crises, I can’t help but hear the joyous symphony of Schadenfreude’s Concerto №21 playing in the background. And I do a little jig sitting in the chair reading the day’s headlines. The tide may turn in the coming years — but the current pain of Byjus has becomes a moment of unexpected vindication for micro players like me!
An unfortunate element is a Zero Value generation game that Byjus has played. The entire enterprise has resulted in losses for all involved in the ecosystem — students, parents, employees, promoters, financiers, and small-scale tutors like myself.
All these years, rather than creating Value — Mr.Byju Raveendran has just focused on valuation . And sadly the same playbook is being played by the rest of the startup ecosystem.
Every time, the Gang of Unicorn Cowboys, impact the livelihoods of smaller entities, it is prudent to bear in mind the narrative of Byjus.
🍁 Hope you enjoyed reading this !
