Edtech giant Byju’s, which launched Byju’s Tuition Center in February last year to tap into the growing offline market, has encountered internal struggles and challenges. Despite its acquisition of Aakash Educational Services Limited for nearly $1 billion, one of the largest deals in the Indian edtech sector, Byju’s faced difficulties in growing its offline presence.
Byju’s Shift in Student Preference Post-Pandemic
After the pandemic-induced lockdown, a substantial number of Indian students who initially turned to online classes started returning to offline coaching centers. In response, various edtech players, including Unacademy, Physics Wallah, and Vedantu, began offering both online and offline learning modes.
High Refund Requests Highlight Dissatisfaction
Internal data accessed by Moneycontrol reveals that Byju’s Tuition Centre has witnessed a significant number of refund requests. Around 60% of customers, nearly two out of every three, have requested refunds in the past two years. Between November 9, 2021, and July 11, 2023, a total of 43,625 refund requests were submitted, with Byju’s processing 41,198 of them, accounting for approximately 95% of the total.
Reasons Behind Dissatisfaction and Refund Requests
Reportedly, refund requests highlight dissatisfaction with the quality and format of courses offered by Byju’s Tuition Centres. Concerns include inadequate installation of CCTV cameras, irregular class schedules, alleged manipulation of attendance records, and perceived communication gaps about class cancellations and refund procedures.
Byju’s Response and Future Prospects
Edtech has denied the report, dismissing the claims as “wildly inaccurate.” Despite the challenges in its offline expansion, the company earlier announced plans to open 300 more hybrid learning centers this year. However, the high refund rates suggest that issues in customer experience and dissatisfaction are impacting the growth trajectory of its tuition centers. As the edtech sector evolves, successful integration of both online and offline modes will be crucial for sustained growth and improved student satisfaction.
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