How is Byjus able to generate a revenue of $72m in a country where majority of its population is middle class, and of course a fair share below the poverty line.

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How is Byjus able to generate a revenue of $72m in a country where majority of its population is middle class, and of course a fair share below the poverty line.

By gobbling up the the entire 5yr/10yr/whatever package revenues as profit in their books. How can they do that? Because they (surreptitiously) make parents take a 5yr/10yr loan through NBFCs. They get a big fat check upfront. NBFC gets their sales targets. Parents make regular payments, (mistakenly) thinking that they can cancel the 5yr plan anytime by stopping fee payments - when in reality they're making EMI payments on a loan.

This is exactly what I have been wondering. One of my cousin is admitting his kid for WhitehatJr when he already goes to a top notch school in a tier 1 city. This kind of thing makes sense only for rich families in tier 2-3 cities. Is it really just fomo or am I missing some crucial?

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How is Byjus able to generate a revenue of $72m in a country where majority of its population is middle class, and of course a fair share below the poverty line.

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