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BYJU’s Messi move is the last flicker before the lamp extinguishes

Shikhar Tripathi by Shikhar Tripathi
7 November 2022
in Opinions
BYJU’s Messi
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It is often said that it is easier to reach the top than to remain on the top. The popular phrase aptly fits the Ed-Tech giant BYJU’s. Even before the Covid pandemic, BYJU’s became the first Unicorn (Valuation $1 Billion or more) and Decacorn (Valuation $10 Billion or more) in Ed-Tech sector. But on the account of unplanned acquisition, financial mismanagement and predatory market practises it is incurring heavy losses and failing to maintain its top position.

Is roping Lionel Messi, BYJU’s new marketing gimmick?

BYJU’s is back in the news and yet again for the wrong reason. The Ed-Tech giant has been suffering financial losses for a very long time. But they kept denying the fact and blamed media houses for carrying out smear campaigns against them.

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Now their true face is in front of everyone. Last week the company laid off more than 2500 employees. BYJU’s now hired Lionel Messi, one of the highest paid athletes right before the football world cup.

Read more: BYJU’s Co-Founder, TFI challenges you to prove us wrong

Messi is not a small name, nor is his endorsement cost. Last time the Indian company that hired him for an advertisement was TATA for TATA Tiago. But at that time TATA was in a very good economic position unlike BYJU’s.

Isn’t it ironic that a company that fired thousands of employees has hired one of the world’s highest paid footballers. And that too after incurring losses worth 2702.14cr and having to shut down 3 offices in a month.

Is it BYJU’s or Oppo/Vivo?

Yes, marketing is important but first you need to grow your business. In the case of BYJU’s, its higher authorities are simply not doing so. They just want a famous face to sell their below average study material.

Previously BYJU’s partnered with Shah Rukh khan and now it has roped in Lionel Messi. Although the company has Chinese investors, that doesn’t mean that they have to operate like Oppo and Vivo.

The time has come where they need to understand, investing in the quality of the product is much better than investing in marketing. We have seen few companies like Oppo and Vivo who simply invest in marketing, not on product. On other hand we also have few examples of those who invest in the product and not on marketing like Haldiram, Bikano, RSPL group and much more.

Is BYJU’s move a gimmick and will it boomerang?

BYJU’s has previously done the marketing part by printing their name on the jersey of the Indian cricket team. But we can see that the move is not effective enough to save BYJU’s from its pathetic situation. Maybe, from this Messi move, BYJU’s want to introduce themself in western countries as well. But wouldn’t making their position strong within India first and then planning to go abroad be a better idea.

As per our early prediction the current situation is not in the favour of the company. Now we are predicting another thing. All this chaos in the organisation will surely affect the launch of its initial public offering (IPO) in coming months.

Read more: After TFI’s explosive story about BYJU’s, the company pays Blackstone for Aakash deal

BYJU’s is thinking that having a celebrity’s face would be enough. But in the current era people are much more aware and smarter. So, they will have to improve the quality of their product. Having a footballer’s or film star’s face on their product will not generate profits. In the coming future it will be very interesting to see whether this move is good for the company or is it the last flicker before the lamp extinguishes.

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Tags: ByjusEmployeesIndian Cricket TeamLionel MessiMarketing GimmickShah Rukh Khan
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