- For Byju’s, Aakash plugged a crucial gap in its range of products
- Byju’s salespeople found it a lot easier to sell Aakash’s products
- Aakash found that Byju’s brought its aggressive selling hacks, deep discounting hacks to its products, too
- Sharing of revenue between the two companies also raised revenue-recognition concerns
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Distressed edtech Byju’s has taught many a lesson over the past 12 years, with one particularly well-learned by its team—never stop selling. And that growth-driven selling mindset often crosses over to mis-selling.
Turns out, Byju’s’ sales force took that sales mojo along with a mix of misinformation, FOMO-fuelling, and deep discounting and applied it to the company’s biggest acquisition, Aakash Educational Services Ltd (AESL).
As a result, what was once the world’s most valuable edtech became a troublesome partner for one of India’s cherished test-prep brands. Byju’s’ brand of aggressive selling first raised red flags among Aakash’s sales and franchise partners, then it sparked conflicts between the teams and, finally, sounded revenue-recognition alarms, The Ken has learnt.
At least three current and former members of Byju’s sales teams in Bengaluru, Noida, and Rajasthan explained how Byju’s sales team would hurt the sales of Aakash. The Ken also spoke to two former and current sales executives from Aakash. They declined to be named for fear of repercussions. Neither Byju’s nor Aakash responded to The Ken’s questions on the matter.
“Many of our business development associates [or sales executives] were using the same old tactics for Aakash, such as showing a sale in different names to distort real sale numbers. Or, selling at low prices,” said a business development manager from Bengaluru who quit Byju’s in April.
What Byju’s did was smartly put its sales squad to work, pitching Aakash’s flagship offline test-prep classes. At the same time, it used Aakash’s course content to whip up an online offering.
One could argue that it’s only natural for Byju’s—already in the eye of a
Yet, that’s not how it turned out to be. Instead, this has pushed the merger further into deep water.
It’s been over two years since the competition regulator approved the deal for which Byju’s had to pay 70% cash and 30% in stock of its parent firm Think and Learn Ltd.
Credits
Written by Arundhati Ramanathan, Alifiya Khan
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