Byju’s to test families affordability before selling courses
- ByStartupStory | December 24, 2022
Byju’s, an edtech company, has announced that it will no longer sell tuition to low-income families who may struggle to pay.
In order to prevent selling its courses or providing loans to families with a monthly income of less than Rs. 25,000, founding partner Pravin Prakash announced the company would begin doing “affordability checks”.
“Children have got some relief today from the psychological trauma they and their families were being put through by the company’s aggressive policies,” NCPCR chairperson Priyank Kanoongo said in a phone interview. “We cannot regulate the functioning of a tech company, but the impact of their exploitative tactics was definitely under our purview.”
According to reports, the National Commission for the Protection of Child Rights (NCRCR) issued summonses after a two-part Context investigation into Byju’s workplace culture and customer service procedures revealed that the company had engaged in unethical business practices to entice parents. Contexts has spoken with a number of customers who claim they were duped into purchasing courses or otherwise exploited and were unable to recover their money.
Byju’s was founded in 2011 by Byju Raveendran and Divya Gokulnath. It is a multinational educational technology company and is valued at US $22 billion as of March 2022. During the 2020 lockdown, the company experienced a sudden financial surge as students turned to online education. Bjyu claims to have over 115 million registered students.
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