Amidst a significant downturn in its valuation, the once-prominent ed-tech giant BYJU’S is now under the spotlight for its marketing tactics. Parents, initially optimistic about finding an educational solution, are now seeking redressal of their grievances along with compensation.
Founded in 2011 by Byju Raveendran, the company soared to a staggering valuation of $22 billion (Rs18,000+ crore) in 2022, riding on the wave of the COVID-19 pandemic. However, the recent downsizing of holdings by investors like BlackRock and Prosus has led to a significant reduction in its valuation, now slashed to $1 billion.
Interactive learning experience discrepancies
Promised one-on-one interactive sessions for her nephew, Shanmuga Priya who opted for BYJU’S services in April 2022, found the reality to be far from satisfactory.
“The company’s representative assured us that in a two-hour class, the last 30 minutes will be dedicated to an interactive session. Additionally, they guaranteed that if we were not satisfied after signing up for a Rs 20,000 per month programme for three months, we could withdraw the subscription,” said Priya.
“Despite our request for cancellation after two months due to quality deterioration, lack of access to study materials, and irregular along with unsatisfactory interactive sessions, we were compelled to pay for two additional months,” said Priya, highlighting issues of financial transparency and customer service.
On concluding notes from Priya, a parent and a mentor for young learners, she said, “I think what happened with my nephew should not happen with any other student. BYJU’S was supposed to be about education but now, it is all about business.”
Coercive marketing and financial dilemmas
Condescending marketing tactics are employed to coerce parents like Namrata Singh into signing up for BYJU’S against their will.
“How have you not opted for BYJU’S yet? We know that your daughter is in Class X and as per our records, she did not attend our session in school. You must know that BYJU’S programmes are great, or have you overlooked this?” shared Singh, a parent, narrating her ordeal with an agent who she claimed belittled her for not seeking their services.
Singh further added that a customer finance representative connected with her days later, reassuring a refund. “Following my social media posts and numerous calls to customer care, BYJU’S reassured me of their efforts for a refund. However, months have passed, and each month I find that my money has been auto-debited yet again,” said Singh, who is a single working mother.
As it turns out, the matter goes beyond BYJU'S and involves other entities as well.
A third party, was one major factor in the mismanagement of financial transactions in the past, confirmed a BYJU'S official to EdexLive. As per many news reports, and Singh as well, Shopsy is the third party in question.
Taking the legal route
After enduring bitter experiences with BYJU'S, a few parents are opting for legal recourse.
Fed up with unkept promises and financial discrepancies, Sidanna Batgeri, from Mumbai, said, “We must have sent over 300 emails by now. And it’s not just us; another six to seven sets of parents are going to file a legal case against BYJU’S, with the possibility of escalating the matter to NCLT (National Company Law Tribunal).”
Narrating his ordeal, Batgeri said that he fell prey to the marketing tactics of an agent who promised to share all the study material, including textbooks, tabs and more.
“I paid Rs 1.53 lakh for my kids studying in Class X and XII. However, none of the materials offered by BYJU'S was as per the course opted by my children,” said Batgeri, who eventually sought a refund from the company.
During 2019-20, BYJU'S underwent restructuring, creating hurdles for Batgeri to reach the appropriate contact to secure his promised refund. Expressing his frustration, Batgeri emphasised that BYJU’S must refrain from making false assurances, considering the involvement of numerous parents.
“It appears that they have downsized to the extent that they lack personnel to provide us with empty promises,” remarked Batgeri, adding that they have lodged a case with the National Commission for Protection of Child Rights (NCPCR).
BYJU’S responses to customer feedback
In a candid discussion regarding sales practices and customer relations at BYJU'S, a source close to the company acknowledged the possibility of aggressive selling tactics stemming from the incentive structure between 2019 and 2022, a challenge commonly faced by customer-centric organisations.
“A small fraction of our previous sales interactions may have deviated from our core values of politeness and transparency, we have decisively addressed those aberrations through a revamped four-tier remote sales model,” the source said.
Acknowledging past lapses, an employee affirmed the company’s efforts in damage control and significant downsizing, signalling a renewed focus on growth.
Additionally, the source, speaking anonymously, shared that there are a high rate of refund requests, also mentioning that a few parents may resort to aggressive behaviour.
In response to the refund policies and parental feedback, BYJU’S maintained its commitment to processing valid refund requests promptly.
“We diligently process all valid refund requests within the stipulated timelines based on payment methods. Delayed refunds account for an insignificant fraction and occur due to factors like late filing, unclear customer data, or improper channels used to submit requests,” shared the source.
Lastly, BYJU’S reiterated their openness to constructive criticism aimed at enhancing their operations while refuting unfounded allegations.
