Research study on Risks in the Ed-tech Industry (BYJU'S)

Research study on Risks in the Ed-tech Industry (BYJU’S)

Risks in the Ed-Tech industry (Byju’s)

By Aditya Pandey and Suraparaju Deepthi, PGDRM Batch July’20-21


What is Ed-Tech?


Ed-Tech , or “educational technology” is the use of Technological tools for the process of learning.​

Let’s start by defining what Edtech start-ups are, “Companies and start-ups that are working to replace or supplement traditional education for students and teachers”.​



Brief about Byju’s


  • BYJU’s  is an Indian Edu-tech startup founded by Byju Raveendran.​
  • Parent Company- Think & Learn started in the year 2011, offers online classes.​​
  • In 2013, First funding came from Aarin Capital, run by Ranjan Pai and Mohandas Pai and later on from Sequoia capital around $25 million.​
  • Later on in 2015, Byju’s app was launched.​
  • Current Valuation is $12 billion.​
  • 35 million users & 2.4 million paid subscribers.​



Risks in this industry


1. Social Risk

Direct interaction with teacher won’t be there and there are many chances that it may affect the student’s success. Can’t be able to understand different view points and skills like team work, communication, listening may get deprived.​


2. Cyber Security Risk

Unauthorized sharing of course material and recordings of online classes, access the system illegally to misuse or manipulate the information, increased risk of data breach and violation of student privacy, interference with system like attacking the system of faculty, spamming etc.​


3. People risk

If the faculty is not acquainted with the online mode it will be hard for the faculty to teach online and will  not be able to transfer the knowledge in coherent manner.​


​4.  Strategic Risk

  •        If there is no growth in the number of students.​
  •         Decrease in employee retention rate.​
  •         No proper business continuity plans.​


5. Psychological Risk

Putting students in front of screens more time without guidance is not a good thing and there are chances that students may develop signs like feeling lonely, poor health, addictive behaviour, not being active etc. Moreover, the combination of online classes and restricted physical movement due to COVID-19 induced lockdowns had a significant impact on students mental and physical well-being.​


​6. Intellectual Property Risk

Their asset is the content they are offering , so if that gets shared publicly, there will be a huge loss for them.​


7. Competition risk

There are hundred’s of competitors in the market, which makes it tough to stand out and look original.​


8. Technology risk

Threat to Student privacy ,No Personal interaction & Geopolitics.​


​9. Risk of copyright infringement

According to the Indian Copyright Act of 1957, reproduction of any work done by a teacher in the course of instruction shall not be entertained. But it is not clear whether this act is applicable to online teaching and pre-recorded video modules.​


10. ​Insufficient Digital Infrastructure & Instructors


​11. Language barriers


​12. Availability of free resources over paid resources


Byju’s money making canvas





This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or it’s students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.



Get the full research study here: Risk in Edtech (Byju’s) by Aditya Pandey and Suraparaju Deepthi



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