Byju Raveendran failed because he didn’t listen, alleges Unacademy’s Gaurav Munjal

Byju Raveendran, Founder and Group CEO of embattled edtech firm BYJU'S, faced setbacks due to his reluctance to heed advice from others, according to Gaurav Munjal, Co-founder and CEO of rival edtech company Unacademy.

“Byju failed because he didn’t listen to anyone. He put himself on a pedestal and stopped listening. Don’t do that. Never do that. Don’t listen to everyone but have people who can give you blunt feedback,” Munjal shared in a post among a series on social media platform X, beginning with “Learnings from the last 24 months”.

“You might not always like the feedback, but take the feedback and act on it,” he said.

Munjal’s posts come as BYJU’S, the once high-flying edtech startup, faces several challenges, including multiple legal battles with some of its lenders and certain prominent investors. Most recently, Prosus, BYJU’S’ largest institutional shareholder, wrote off its entire investment in the edtech firm months after the Byju Raveendran-led firm sought new funding at a 99% discounted valuation through a rights issue.

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“Some Investors are assets, some are liabilities. The trick is to figure out the ones who are assets and listen to them,” the Unacademy chief wrote in a post on X.

India’s edtech sector, which bloomed during the pandemic, faces a reality check with layoffs, funding woes, and a focus on profitability as companies shift gears towards sustainable growth.

Munjal noted in a post, “All 2021 Valuations are bloated. This is not Market Correction. This is the reality. 2021 wasn’t,” and added, “Business Model Innovation is more Important than Product Innovation.”

During the pandemic, Unacademy and BYJU’S were engaged in several edtech mergers and acquisitions, fueled by substantial funding from both domestic and international investors.

Interestingly, Unacademy, India’s most-valued edtech unicorn, is reportedly discussing a merger with another Bengaluru-based company K12 Techno, which operates the Orchids International Schools chain.

Unacademy has undergone several top-level changes, including departures, appointments, and promotions. While Unacademy’s turnover has increased from its growing offline business, revenue from its core online test preparation segment has declined.

In a post-pandemic shift, edtech companies are exploring a renewed focus on offline learning, alongside hybrid models, to bolster their business strategies.

Munjal’s post clearly emphasises an offline-focused approach, “Don’t have any biases, it doesn’t matter the kind of Company you want to build. What matters is what your customers want. If they want Offline, then launch Offline." He added, “If you’re building for India, then having some form of Offline Play is a must.”

Earlier this month, Unacademy launched a language learning app, adding a new revenue stream. In December 2023, Munjal claimed the company had over four years of runway with its cash reserves. Unacademy nearly halved its losses and increased operating revenue in FY 2022-23 compared with the previous year, benefiting from reduced expenses.

“Some years are not about winning, some years are about surviving. You’ll win in the long run if you focus on the right things and keep executing,” he wrote in two separate posts.