Amid financial constraints, Byju’s, the leading edtech firm, has rolled out significant price reductions on its products and unveiled a revamped sales strategy. The move aims to democratize education by making it more accessible while ensuring the sustainability and scalability of the company’s operations.
Byju’s has slashed the prices of its offerings, with the annual subscription fee for the Byju’s Learning App now standing at Rs 12,000 per year, marking a reduction of at least 30 per cent. Additionally, Byju’s Classes and Byju’s Tuition Centres (BTC) are now priced at Rs 24,000 and Rs 36,000 respectively for a full year of classes.
In a candid meeting with over 1,500 sales associates and managers, Byju’s founder Byju Raveendran unveiled the company’s new sales strategy, emphasizing empowerment for the sales workforce and enhanced accessibility to quality education. Raveendran urged associates to expand their teams by inviting friends to sell and act as their managers, envisioning a 50,000-strong sales force within the next year.
Under the new model, managers will take on a mentoring role rather than being taskmasters. Employees are encouraged to report any issues directly to Raveendran, fostering a cultural shift within the sales teams.
Byju’s has completed its transition from a push-based to a pull-based sales model, focusing on ‘love for learning’ rather than ‘fear of missing out’. Managers will now act as coaches, supporting and enabling the sales team, with associates having the flexibility to work on their own terms.
Sales associates will receive 100 per cent of the sales closed directly into their accounts on the next working day, with managers receiving 20 per cent. After clearing arrears, associates will receive 50 per cent of sales closed, while managers will receive 10 per cent.
With the number of free users touching 250 million, Raveendran assured staff that there is no shortage of interest in the products and services. Sales associates are encouraged to experience the products themselves to better understand their quality and market-leading position.
Byju’s has implemented a new policy linking sales staff’s salaries to the revenue they generate every week, providing relief to employees amid financial uncertainties. Last month, Raveendran secured a private debt of about Rs 30 crore to pay March salaries, reflecting the company’s commitment to its workforce.
The delay in payments stems from funds raised through a recent rights issue, which are currently locked in a separate account due to an ongoing dispute with investors. However, Byju’s is determined to navigate these challenges and maintain its position as a pioneer in the edtech industry.
