Downfall of Edu. Tech Company (byjus)

By - Gurumantra Civil Class

At - 2025-11-13 23:23:49

Downfall of Edu. Tech Company (byjus)

In 2015, a young engineer from Kerala in south India came up with an ambitious plan to take math and science online and make it fun for the country’s stressed teenagers.

 • But instead of remaining focused on education and technology, Byju Raveendran appended a gigantic sales machine to his edutech — with Bollywood superstar Shah Rukh Khan and soccer legend Lionel Messi as his brand ambassadors, and an army of reps hustling to sell courses to anyone downloading Byju’s — The Learning App

 • And then, with the help of cheap, over-eager venture capital, he turned his eponymous organization into an acquisitions juggernaut, spending nearly $3 billion globally during the pandemic-era craze for remote learning.

 • The result has been nothing short of disastrous. Just 15 months ago, the startup was worth $22 billion. Now one of its main investors has cut Byju’s valuation to under $3 billion.

 • Prosus NV — as well as two other early backers, Peak XV and the Chan Zuckerberg Initiative — have quit the edutech’s board. Creditors have taken control of Byju’s Alpha, a US financing vehicle, over an unpaid $1.2 billion term loan.

 • The group is facing an acute liquidity crunch. Amid mass layoffs and deep losses, the former billionaire founder has sold his homes to pay salaries. Still, Raveendran is not entirely out of options.

 • Byju’s could raise funds by selling Epic, its US-based kids’ digital reading platform. At home, its physical test-prep business has seen interest from a wealthy Indian investor.

 • In a sale or initial public offering of the unit, the crown jewel of the shrinking empire could fetch more than the nearly $1 billion Byju’s had paid for it in 2021.

 Role of the education system and coaching centres:

• Focus on the competition: Academic achievement and competition are heavily emphasized in the Indian education system. A lot of pressure is placed on students to perform well on exams, especially board exams and competitive entrance exams for elite institutions and universities.

• Peer pressure: Peer pressure is very strong in India because of how competitive the educational system is. Students could feel pressured to compare themselves to their peers, which can cause anxiety and feelings of inadequacy.

• Rote learning: Lack of critical thinking and creativity may result from a curriculum that places too much emphasis on rote memorization. The resultant worry and anxiety among students who feel caught in a cycle of memorizing might therefore be attributed to this.

How coaching system is degrading Indian education system -

 1. These classes with their crazy marketing techniques target students and parents alike. They create a situation where you think you cannot crack a particular exam if you don't attend a coaching class.

 2. Often they encourage blind competition among students. Their approach is only to crack the exam and not to learn something out of the subjects.

 3. Because many students go for such classes, the teachers in school dont take much efforts to teach; some even have their own private classes.

 4. this has led to deterioration of our education system and the concept of “learning for exams” rather than “learning to gain knowledge” is given importance.

 5. These classes have created a thriving business out of our education system. Everyone, irrespective of their social or economic background should get the same education.

 6. Therefore, We should not have coaching classes, as in the end, it all trickles down to the economic conditions of a family, which leads to an unfair playing field, which should never be a factor in deciding the merit of a student

Reasons why they are increasing:

1) In recent times these coaching institutions are turning into high profit making organization instead of service motive , all institutions are in race to create their own market in education sector leading to more number of institutions coming each year .

2)No clear policy in place to regulate this coaching centres .

3) Low standard of education given by colleges .

4) Higher number of passed outs every year and limited number of seats in prestigious institutions create a situation where coaching institutions can easily exploit the students and parents .

5) Some colleges are itself motivating their students to join coaching institutions , due to some close nexus between college management and coaching centres .

6) Number of unregistered institution without getting noticed by income tax department are increasing .

7)Increased awareness among students and parents

8)Technology developments Ex: Experts who are at a distant can be made easily available through live streaming.

Need to Regulate Coaching Centres in India

1. Increase in student suicide cases– There has been an exponential rise in cases of student suicides from the competitive exam coaching institutes. For ex- 28 cases of student suicides were reported in 2023 alone from Kota- the coaching capital for engg. and medical exams.

2. Exorbitant fees and lack of exit options- The coachings charge exorbitant fees and do not provide exit options with return of balance fees to students due to lack of regulatory guidelines.

3. False and Misleading Claims- The coaching centres have been indulging in false and misleading claims related to selection ratio from their institutes. For ex- Recent fines imposed on UPSC coaching centres for making false claims.

4. Engineer or Doctor producing factories- The coaching centres function like a factory to produce candidates well equippied with practice and conceptual clarity to solve the JEE and NEET questions, but they lack heavily in extracurricular activities and life skills. For ex- Kota is termed as KOTA FACTORY.

5. Absence of regulatory oversight- There were no penal provisions and there was complete lack of regulatory oversight. For ex- Inapplicability of Consumer Protection Act for the coaching industry.

6.Since these institution are concentrated in urban areas , it will create a sharp rural urban divide and rural students will find it difficult to clear the competitive exams.

7.As long as education is a fundamental right of an individual , it is the duty of the government to make sure that no one is denied from getting it and it should also take steps to improve the standard of education in colleges parallely

 New Guidelines for Coaching Centres

1. Enrolment Guidelines- Students younger than 16 years should not been enrolled in coaching centres.

2. Refrain from Misleading Promises- Coaching centres should not make misleading promises or guarantee ranks to parents and students.

3. Ensure Mental well-being of students- The coaching centres must provide weekly off for students. The curriculum must be suitably spaced-out and the duration of classes must not be longer than five hours a day.

4. Customised leaves and co-curricular activities- Coaching centres will have to provide Customised leaves to students for “emotional boosting” and “connection with family“. Also, co-curricular activities, life skills, counselling from a psychologist, emotional bonding and mental well-being will have to be prioritised in coaching centres

5. Qualification of Tutors- Tutors with qualifications less than graduation degree should not be allowed to teach in coaching institutes.

6. Maintenance of Website- Coaching centres will be required to maintain a website with updated details of the qualification of tutors, courses or curriculum, duration of course, hostel facilities and the fees being charged.

7. Exit Option from the Course- In case when a student wishes to exit the course, coaching centres must refund fees fully paid by a student on a pro-rata basis within 10 days. An easy exit policy and details of a fee refund policy will also have to be furnished on the website.

8. Filing complaints of complaints- The guidelines provide provisions for filing complaints before “a competent authority” against the coaching centres by the student, parent or even tutor. The complaints will have to be disposed of within thirty days.

9. Penal Provisions- Fine of up to 1 lakh or cancellation of registration, if coaching centres charge exorbitant fees from students, cause undue stress leading to student suicide and other malpractices.

10. Regulation and Monitoring- State governments will have to undertake registration of new and existing coaching centres, within three months after the guidelines come into effect. The state government will be responsible for monitoring and regulating the activities of the coaching centre.

Suggestion

1. Proper Regulation by the state government- Since most of the engineering and medical coachings take place at the 10+2 level, state governments have been entrusted with the regulatory function. State governments must diligently ensure the regulation of coaching industry.

2. Public education- There must be a large-scale public education about the adverse impact of putting such pressure on children from an early age through media and civil society organisations.

3. Instilling sensitivity in Parents- We need to make parents sensitive towards their children in their adolescent years, instead of putting the pressure of parental dream on them.

4. Revamp education system- The rote learning and exam-centric education system in India must be revamped with focus on imparting conceptual clarity to the students to stem the mushrooming of private coachings in India.

5. Substance Abuse Prevention Programs– Substance abuse prevention programs must also be implemented in the coaching districts like KOTA and Delhi to prevent student suicides.