Nearly 60% of Byju’s Tuition Center customers request refunds in 2 years
According to internal data exclusively obtained by Moneycontrol, nearly 60% of customers at Byju’s Tuition Centers have requested refunds over the past two years. This highlights a significant level of parental dissatisfaction, which poses a challenge for the world’s most valuable edtech startup.
From November 9, 2021, to July 11, 2023, a total of 43,625 refund requests were submitted to Byju’s Tuition Centers. The company reportedly processed 41,198 of these requests, accounting for approximately 95% of the total refund requests. It’s important to note that Byju’s has sold nearly 75,000 Tuition Center subscriptions in total.
In response to these findings, a spokesperson for Byju’s refuted the reported numbers and labeled them as “wildly inaccurate.” It’s worth considering that the response from the company indicates a potential disagreement with the data and its interpretation.
This situation sheds light on the challenges that edtech companies, even those as prominent as Byju’s, can face in meeting customer expectations and delivering on their promises in the highly competitive and rapidly evolving education technology landscape.
The elevated rates of refund requests indicate that students are expressing dissatisfaction with the quality and structure of the courses provided at Byju’s Tuition Centers (BTC). BTC was initially considered a growth driver for the company’s future, but Byju’s has since taken a different approach by suspending its expansion plans. The company has chosen not to open any new tuition centers this year, a notable shift from its original target of leasing at least 300 additional centers.
Moneycontrol conducted interviews with the parents of 15 students to gauge their sentiments, particularly in light of the recent criticisms surrounding Byju’s. With the exception of the parents of two students, the rest extensively discussed various issues they’ve encountered.
These concerns encompass a range of topics, including inadequate installation of CCTV cameras, irregular class schedules, alleged manipulation of attendance records, and a perceived lack of communication about class cancellations and refund processes.
These parental perspectives highlight the complex challenges that Byju’s is navigating, including managing customer expectations, ensuring consistent service quality, and maintaining transparency in its operations. Customer feedback and experiences play a crucial role in shaping the reputation and direction of any company, especially in industries like education technology where trust and satisfaction are paramount.
Moneycontrol gained access to a WhatsApp group consisting of 127 parents who have enrolled their children at Byju’s Tuition Center in Saraswati Nagar, Jodhpur. This group also included a few former employees who had been laid off by the company.
The group’s discussions were marked by expressions of frustration from parents, with messages like “Byju’s ko refund karna padega” (Byju’s will have to issue a refund) and “Hum sab ko refund chahiye aur ye sirf consumer court dila sakta hai” (We all want a refund, and only the consumer court can help us with this).
The parents in the group engaged in conversations centered around strategies to bolster their refund appeals, following several unsuccessful attempts to secure refunds. They also shared their experiences of facing unresponsiveness and discourtesy from Byju’s staff while making these refund requests.
Additionally, parents shared the refund request letters they had sent to Byju’s. They had visited the Saraswati Nagar Tuition Center multiple times in an effort to meet with the management there, but had not received satisfactory responses.
These discussions in the WhatsApp group underline the collective dissatisfaction among parents and their determination to seek redressal for their concerns, potentially through legal means such as the consumer court. The involvement of former employees further adds a layer of complexity to the situation.
Parents have voiced their concerns about the quality of education and management at Byju’s Tuition Centers (BTCs), highlighting a series of issues including irregular classes, inadequate facilities, and poor communication. One parent, speaking anonymously, mentioned that classes were not happening on time, and students were studying in staff rooms instead of classrooms. The resignation of a trusted class manager and allegations of false accusations against him further contributed to parents’ dissatisfaction.
As a response, all parents have stopped sending their children to the BTC, and formal refund requests have been submitted. However, staff at the center have allegedly continued to mark attendance to show higher occupancy and have not responded to the refund requests.
These challenges have added to the woes of Byju’s, India’s most valuable edtech startup, which has been facing various difficulties, including discontent among its area business heads (ABHs) and ongoing negotiations for funding and debt repayment. Byju’s had initially invested heavily in the concept of hybrid learning through its BTCs, aiming to create a network of tuition centers across India.
The challenges within BTCs coincide with Byju’s ongoing efforts to secure funding and address financial issues. The company had initially planned to launch hundreds of tuition centers as a part of its expansion strategy, but the current issues highlight the complexities of managing offline classes and the importance of experienced personnel in the field.
