BYJU’s Tuition Centers Face High Refund Requests, Parental Dissatisfaction
A recent report has revealed that BYJU’s Tuition Centers are facing a significant level of parental dissatisfaction, as nearly 60% of customers have requested refunds over the past two years. This poses a challenge for the world’s most valuable edtech startup.
According to internal data obtained by Moneycontrol, a total of 43,625 refund requests were submitted to BYJU’s Tuition Centers from November 9, 2021, to July 11, 2023. The company processed approximately 95% of these requests, accounting for 41,198 refunds. It’s worth noting 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, labeling them as wildly inaccurate. This indicates a potential disagreement with the data and its interpretation.
The elevated rates of refund requests suggest that there is a widespread dissatisfaction among students regarding the quality and structure of the courses provided at BYJU’s Tuition Centers. Initially considered a growth driver for the company’s future, BYJU’s has suspended its expansion plans by choosing not to open any new centers this year, deviating from its original target of leasing at least 300 additional centers.
Moneycontrol conducted interviews with the parents of 15 students to gauge their sentiments regarding BYJU’s. With the exception of two parents, the rest expressed their concerns about a range of issues they’ve encountered, such as 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 shed light on the complex challenges BYJU’s is facing, including managing customer expectations, ensuring consistent service quality, and maintaining transparency in its operations. In industries like education technology, where trust and satisfaction are paramount, customer feedback and experiences play a crucial role in shaping a company’s reputation and direction.
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. Discussions in this group revolved around frustration from parents, with messages advocating for refunds and hints of legal action, such as approaching the consumer court.
Parents in the group shared their unsuccessful attempts at securing refunds and the unresponsiveness and discourtesy they faced from BYJU’s staff while making refund requests. They also exchanged refund request letters they had sent to the company, expressing their determination to seek redressal for their concerns.
These challenges have added to BYJU’s ongoing difficulties, which include discontent among its area business heads (ABHs) and negotiations for funding and debt repayment. BYJU’s had invested heavily in the concept of hybrid learning through its Tuition Centers, aiming to create a network of centers across India.
The situation within BYJU’s Tuition Centers highlights the complexities involved in managing offline classes and underscores the importance of experienced personnel in the field. As the company continues to address financial issues and secure funding, it will need to navigate and resolve the issues raised by dissatisfied parents to maintain its position as India’s most valuable edtech startup.
