Team-BHP - Startup shenanigans

Some of these edtech startups have a very predatory sales technique. They're also very litigious with frivolous cases that are drawn out so people can't afford to fight them when they post their bad experience with them publicly and become popular.

They target each and every sector, even a family earning 10-12k per month. They ask the student to take a free test which is very hard for to their level. Obviously, the child even though they might be brilliant performs poorly in that test. Then they start fear mongering by telling parents that the child performed poorly this "very simple test" which their EdTech students excel in and might not even be able to pass the board/important exam. They try to hit that concerned parent part to emotionally manipulate them into buying Byju's course. They say that you can cancel your course within 30 days easily no questions asked and will get refund, and also have tie ups with banks/NBFCs for loans. The parents fall for this and enroll their child in the course, some even paying half of their monthly salary as EMI. But if within 30 days, they realize that the course is not that good or for any other reason want to quit the course for refund, they'll stop picking the call or direct them to call centres which will never process the refund for 30 days. After 30 days, they'll just tell that it's too late and refund is not possible. Some parents make noise on social media and are able to get a refund, but others just accept that they will now have to pay the EMI. The uneducated parents are the worse affected in this case.

The above sales technique is praised and appreciated by the Management of these EdTechs.

The EdTechs that follow such practices are one of the dirtiest companies on the planet and I personally despise the people who work for them and/or are associated with them knowing that they use predatory sales technique.

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Originally Posted by anti21 (Post 5403146)

Their lack of humanity is quite clear. Case in point my maid, she has paid around 30K for one of these crooks because a salesguy came to their neighbourhood in a suit and car and told them that unless they want their children also to become daily wagers or household help they should buy this service. The evangelist and predatory nature of these guys is so terrible no amount of convincing was sufficient to change her mind in fact alluding to the fact that the wealthy don't want this service given to the poor because they can't bear them improving.

I reviewed the material they sent, it's nothing great, and govt schools have similar syllabi and material

The saddest part is those who knew Byju in the beginning know how good and genuine and helpful his content used to be. He's a fantastic teacher in his own way for a specific set of material and topics.
Regards.

Quote:

Originally Posted by anti21 (Post 5403146)

They try to hit that concerned parent part to emotionally manipulate them into buying Byju's course. ...After 30 days, they'll just tell that it's too late and refund is not possible.

Quote:

Originally Posted by harshaguduru (Post 5403199)

Case in point my maid, she has paid around 30K for one of these crooks

This is shocking. I thought at worst this was a case of a company that was growing too fast, had unrealistic valuation, and couldn't deliver/meet revenue targets. Didn't realize they were using these sort of underhanded tactics on the ground as well.

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Originally Posted by am1m (Post 5403203)

They prey on the biggest weakness of the Indian parent, 'their kids should be given opportunities which they couldn't'

It's quite surprising that very few parents in the middle class and above socio economic segments fall for this.

This has been documented HERE

Quote:

Originally Posted by anti21 (Post 5403146)

The above sales technique is praised and appreciated by the Management of these EdTechs.

Do you think it's just the management who appreciate this? The investors are hand in glove with these predatory sales tactics.
As long as the customer does not create ruckus and take the issues out on social media, don't bother with refunds or resolutions. This is true of not just Edtech, even ecommerce or any other service for that matter.

Let’s take these roles at a place like Byju:

A billionaire looking for next Facebook like opportunity

A young Wharton MBA who represents the investor and calls all the shots

Rags to riches founder who attained celebrity status.

Young IIM MBA who runs the ambitious high risk high reward big budget sales and marketing campaigns

Who amongst us wants to say no to such roles? Who doesn’t want their children to aspire to become like them? On the internet, all of us can pontificate but in real world - this is the type of success we are chasing and celebrating.

The meek shall be exploited.

Keeping the money side of things aside, I think who have unduly suffered are the students. Mass education was one of the sectors that was still untouched by PE cash a few years ago. The teacher - student relation and communication used to be one of respect, friendship and guidance. That has changed to a large extent because of much cash infusion and running after valuations. If you read the ken piece, teachers no longer can just teach - they have to sell - do viral gossip videos, bloopers, rival criticisms - to get more engagement. Teachers having monthly sells targets - how sad is that! Their credentials are displayed on edtech sites in terms of screen hours of engagement and not experience / education / student testimonials.

I checked out some of the popular teachers' channels. These people have at once point taught on edtech sites but then took-off on their own channels as their popularity grew / disagreements with policy decisions rose. Take this for example - https://www.youtube.com/watch?v=LWfnWVtil7w - I'll make no comments on her abilities as a teacher - but she stops mid way multiple times asking her viewers to like the video before she'll proceed (e.g. 18:40). IMHO, this is not a great example of being a teacher. This entire thing has just become uber-competitive not just between students but also between the teachers.

Obviously, money isn't bad. But where you put it at and what you expect of it makes the difference. Similar kind of money invested at government school infra would have benefited many - but of course we don't have that. What sad state of affairs. :disappointed

Another important part of the equation are parents. I am not one and do not understand the reasons they have to enroll their little ones on platforms like these (except maybe at 10+2). If someone can shed some light, that would be helpful.

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Originally Posted by dijkstra (Post 5403238)

Another important part of the equation are parents. I am not one and do not understand the reasons they have to enroll their little ones on platforms like these (except maybe at 10+2). If someone can shed some light, that would be helpful.

What @harshaguduru has mentioned is one such example

Quote:

Originally Posted by harshaguduru (Post 5403199)

Case in point my maid, she has paid around 30K for one of these crooks because a sales guy came to their neighbourhood in a suit and car and told them that unless they want their children also to become daily wagers or household help they should buy this service

The driver who was working with me earlier when my office commute was 1.5 hours each way daily and the maid who helps us currently both mentioned that teachers in the schools their children go to are pushing hard to enroll the kids in private tuitions these teachers conduct after school hours. The kids in both cases are in classes below 10 currently. And these are not are not high-end schools in any way.

To top this, our maid said she and her husband are being contacted by the EdTech sales advisors extolling the virtues of having their children take up online tuitions and pay on EMIs they are conveniently arranging. The EdTech sales guys are pitching this as a magical way for kids to become stars, get top ranks and land well-paying jobs.

We specifically told her not to get into this given that her boys are in middle-school only and the high costs of this service. While she was not fully convinced of our arguments, she's at least not jumped on this bandwagon for now. But I feel for the parents who want to provide any/all opportunities for their kids to rise above the crowd and make a better life for themselves.

Don't know where and when this craze of many of today's startups to get-rich-quick at all costs is going to end. I know there are conscientious founders and startups that are doing good, meaningful work that will last long, but the "solution looking for a problem" variety numbers appear high these days :Frustrati

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Originally Posted by Samurai (Post 5402036)

The Ken story reveals more about Byju's shenanigans...

However, I am wondering about the investors of Byju's. Don't they get to see the accounting books, independent of the auditors? How could they keep pumping money into a business with imaginary revenue and real crippling losses?

Most of these new gen venture capitalist firms are all about speculation these days. It's not about whether it is currently making profit, but whether it will make profit in the future. Right now it's all about cornering the market by blowing venture capitalist money to advertise and offer promotions so they can then overcharge in the future. The initial investors hope that either a large company will acquire it or they will eventually go public and they can then offload their shares onto the public in the form of an overhyped IPO. It's the same model that Uber, zomato etc followed. They are willing to overlook all of Byju's shady practices as long as they feel that they can make a good return on their investment.

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Originally Posted by am1m (Post 5402454)

That's because those ads work. Advertising in India is largely driven by Bollywood and Cricket and those ads work better for the mass-market, target audience than the ones that win Cannes Lions.

Speaking of ads, similarities between Byju's and another education related business from long ago. Anyone remember IIPM? :) Both had the same celebrity as a brand ambassador too!

Doesn't have to beget a Cannes Lion but it's a canvas to connect with people. Think 'Hamara Bajaj' or 'Kawasaki - Ae Chalnewale raah mein' or even the 'Dhaag achcha hai' .

It's probably true that discerning consumers cause good products to be created and consumers that are ok with bad products lead to more such products. Customer is the king!

Also, on the same note, is it even legal for movie theaters and subscription based channels to keep playing ads ? You pay for the time right ?

(End of off topic convos)