Raveendran said that over 85 per cent of students who sign up for Byju’s service come back to it the next year. It takes 12 years for a student to complete primary and secondary school in India and the company wants to become the learning partner for every student over this entire cycle.
India has close to 260 million students, which is higher than even in China, making for a huge opportunity for technology-enabled learning services. The lack of qualified teachers in the country adds to the potential of services like Byju’s, and this even drew the attention of the Chan Zuckerberg Initiative, the philanthropic fund of Facebook founder Mark Zuckerberg and his wife Priscilla Chan which led a $50 million investment in the company in September 2016.
On valuations, Raveendran said that Byju’s enjoyed a good valuation since it wasn’t a cut-copy-paste idea from some other part of the world, like so many other startups in India today. This, along with an already profitable business and a huge market is what has driven Byju’s valuation up.
“Our model is creating a new segment, it’s simply not a cut-copy-paste of some model from the US or China. Even countries which are way ahead of in digital infrastructure and physical infrastructure haven’t created something like this, which is why it’s very exciting from a global investors' point of view,” added Raveendran.