Byju’s main app has been removed from the Google Play Store due to disruptions in payment services. Other apps from the company, including Byju’s Exam Prep and the Think and Learn Premium app, remain available.

Technical issues have also affected Byju’s website, causing server errors for booking free sessions for students in grades four to nine and the Early Learn programme.

Byju’s, once valued at US$22 billion, is currently undergoing insolvency proceedings.

This follows a claim from the Board of Control for Cricket in India (BCCI) to recover 158 crore rupee (US$18.57 million) owed for a sponsorship deal.

Glas Trust, representing US lenders over a US$1.2 billion loan taken in 2021, is also pursuing legal action against the company.

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🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ The post-pandemic edtech correction is accelerating

Byju’s removal from Google Play Store highlights the broader industry-wide correction happening in edtech.

After hitting peak valuations during the pandemic, global edtech venture funding has now fallen to its lowest levels since 2014, with numerous companies facing similar operational challenges 1.

This trend extends beyond Byju’s, with companies like Coursera and 2U also experiencing significant financial difficulties and stock price declines in recent quarters 1.

School districts across the US are reevaluating their edtech portfolios as federal pandemic relief funding expires, forcing difficult decisions about which digital tools to keep 2.

The shift back to traditional learning environments has created a fundamental challenge for edtech companies that scaled rapidly during remote learning but now struggle to demonstrate sustained value.

2️⃣ Aggressive acquisition strategies often mask operational weaknesses

Byju’s rise and fall demonstrates how rapid expansion through acquisitions can create integration challenges that ultimately threaten company viability.

The company’s ambitious growth included numerous high-profile acquisitions, including Epic! for nearly $1 billion—an asset they’re now reportedly trying to sell to raise emergency funds 3.

Financial reporting delays and governance issues followed these acquisitions, eroding investor confidence and contributing to the current crisis 4.

Similar patterns have appeared across the startup ecosystem, where companies prioritize growth metrics over sustainable operations, only to face integration and debt management challenges later.

The current service disruptions directly stem from payment issues with AWS, showing how operational fundamentals eventually catch up to even the most highly valued companies 5.

3️⃣ Founder journey from teacher to troubled tech leader offers cautionary lessons

Byju Raveendran’s personal trajectory mirrors his company’s arc—from a teacher scoring in the 100th percentile on the CAT exam to building a $22 billion edtech giant that’s now in financial turmoil 6.

His teaching philosophy of visualization and concept-based learning that initially attracted millions of students has been overshadowed by accusations of aggressive sales tactics and financial mismanagement 4.

The founder’s recent acknowledgment that taking a $1.2 billion term loan in 2021 was a mistake highlights how even experienced entrepreneurs can make critical financial errors during periods of rapid growth 5.

Reports indicate Raveendran has sold personal assets to pay employee salaries during the crisis, demonstrating the personal costs of business failure at this scale 3.

His public commitment to “Byju’s 3.0” focusing on educational outcomes rather than profit shows an attempt to return to the company’s original mission, though the app’s removal suggests these efforts may be too late 5.

Recent Byju’s developments

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