Byju’s is yet again in the news but not for good reasons this time. There have been many complaints regarding its shady practices around getting new users and financing the education. Let us look at some of them and see how the EdTech major is reportedly exploiting the market.
Crux of the Matter
Recently, there have been a lot of complaints about how Byju’s tends to trap parents into getting a loan for subscribing to their educational plans.
- Byju’s’ Business Development Associates are known for their artful sales pitches.
- Each speech would convey that the parents need to be more responsible for their child’s future and that they need to act now for the same.
- The BDA position the product to be like a scholarship, by offering them at discounted prices.
- It makes parents believe that their child is exclusively selected from a bunch of children.
- The scholarship offer is availed for a very short period, thus luring the parents to make a hasty payment.
- The subscription amount EMIs are then financed through third party institutes like NBFCs or Banks.
The Payment Medium
- They also ask for Aadhar & PAN Card in order to get CIBIL & Bank details for automated EMI deductions.
- EMIs are received through monthly instalments of Credit Cards or Electronic Clearing System.
- Before the parents know, the monthly amount is automatically debited post one-time authentication.
- In more than 50% of the cases, parents had no clue that they were taking a loan.
Trial Period Frauds
- In quite a few cases, Byju’s have dishonored the cancellation request made by the parents.
- Some parent has complained they never received the requested refund.
- Give access to initial classes and then later complain of network issues.
- Untrained instructors – the mentorship promises made during the sales pitch were not fulfilled.
- Tie up with schools and make the faculties force the students to take up courses offered by Byju’s
Did you hear about Byju’s latest acquisition of Aakash Institutes for ₹7300 crores? If not then read about it here.
- Amazon India recently launched Amazon Academy, a rebranded version of its IIT JEE preparation app JEE ready. India’s online education sector has been one of the biggest beneficiaries of the Covid-19 pandemic-induced shutdown in the country.
- Sales process engineering is the engineering of better sales processes. It is intended to design better ways of selling, making salespeople’s efforts more productive. It has been described as “the systematic application of scientific and mathematical principles to achieve the practical goals of a particular sales process”.
- The point of sale (POS) is the time and place where a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment.