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Byju’s-owned Great Learning under fire for ‘mis-selling’ IIT-Bombay course – Moneycontrol

Byju’s had laid off over 2,500 employees across its group companies.

Anirudh Singh (name changed), 34, a working professional, came across an advertisement for a postgraduate programme (PGP) from Indian Institute of Technology-Bombay (IIT-B) popping up when he was surfing the internet for executive education programmes.

Singh clicked on the ad and it took him to the website of Great Learning, a Singapore-based online provider of higher and professional education courses purchased by Byju’s last year for $600 million.

“On the main page, everywhere, you would see Great Learning advertising it as a PGP from IIT -Bombay. They had an entry procedure, where we were asked to take a basic test and all and then our classes started,” said Singh.

“It was a six-month course, where we were charged around Rs 1.53 lakh including GST (goods and services tax) and all that. But the certificate that we got after the course nowhere mentioned it as an IIT-B PGP course. It only said it was a CEP (Continuing Education Program) course by IIT- Bombay. I already had a different CEP certificate, why would I do it again? I wanted a PGP from IIT- Bombay and I didn’t get that,” Singh added.

Singh is not the only one. Over 130 alumni are alleging that Great Learning misled them by selling a Continuing Education and Quality Improvement Programme (CE&QIP) course offered by IIT-B as a PGP.

Back and forth

While IIT-B’s website describes the course as a part of the CE&QIP programme, Great Learning pamphlets showed it as a PGP from IIT -Bombay.

A screenshot of Great Learning's advertisement A screenshot of Great Learning’s advertisement

A screenshot of IIT Bombay's website A screenshot of IIT Bombay’s website

To be sure, Great Learning sent a sample of the certificate to users before accepting admissions, which mentioned the course as a CE&QIP course from IIT-B.

Even so, the Byju’s-owned company bombarded the students with pamphlets and digital advertisements that incorrectly described the course as a PGP programme, alumni said.

Moneycontrol spoke to at least seven alumni who have raised the issue with Great Learning and have also filed complaints with the India Edtech Consortium (IEC), a body set up under the Internet & Mobile Association of India (IAMAI), which counts most edtech companies, including Byju’s, as its members.

A source from IEC confirmed that the consortium had received complaints from alumni who, meanwhile, are also looking to take legal action against Great Learning for mis-selling the course if their complaints aren’t resolved.

A spokesperson for Great Learning said the programme’s title was agreed to between IIT-Bombay and Great Learning. The spokesperson also acknowledged that the company received a notification from the IEC, and said that it has resolved the issue ‘as needed.’

“All executive programs at IIT-Bombay are conducted by CEP, which is the executive education arm of IIT-Bombay and this is true for this program as well,” the spokesperson said.

QR code no solution

Alumni said the certificate they received on completion of the course has a QR (quick response) code on it, which directs the user to website verification of the certificate.

“IIT-B CEP has also provided a verification link to all learners to whom the certificate was issued, clearly outlining the title of the program as PGP. This verification link clarifies the nature of the certificate to any employer, recruiter or other stakeholder,” the spokesperson for Great Learning said.

Great Learning added a column on the website, describing the course as a PGP after its alumni complained.

“But who is going to scan the QR code? A recruiter will only take a look at the hard copy of the certificate and we haven’t got that. This is not done. First, they mis-sold the course, second they aren’t issuing us a fresh certificate, which has ‘PGP’ mentioned,” one alumnus said.

“And to address our issues, they did nothing. They kept a virtual meeting but none of us were allowed to unmute ourselves. We just were listeners and the course co-ordinators (of Great Learning) were justifying how what they did was right,” the learner added.

Problems at Byju’s

Byju’s acquired Great Learning in July 2021. Byju’s, the world’s most valuable edtech startup, and its group companies have been under fire for alleged mis-selling of various courses.

While some students and parents are taking their complaints to social media, some are taking legal action against the company. Earlier this month, Byju’s had to settle a consumer court plaint filed by a parent by offering a refund of Rs 99,000 and compensation of Rs 30,000, according to a media report.

The alleged mis-selling complaints come at a time when the edtech decacorn, valued at $22 billion, is muddled with issues including delayed fundraises and is thus cutting costs.

Byju’s announced raising $800-million in equity earlier this year, and a similar amount in September last year. However, the company is yet to get about $250 million of the over $1.5 billion it announced it was raising.

Meanwhile, Moneycontrol reported last month that more than 2,500 employees were sacked from Byju’s group companies in a bid to cut costs. A few teams have been left with no members. Byju’s, however, denied the development and said it only laid off 500 employees.

Byju’s has also not filed its FY21 (2020-21) audited financial results with the Ministry of Corporate Affairs yet because auditor Deloitte flagged various concerns with the company’s accounts. Byju’s had said that the company would file FY21 results by the end of June, but missed the deadline. Now, the company has set itself a deadline of July 15.

The challenges faced by India’s biggest education company are emblematic of the overall edtech sector, which has been struggling after the coronavirus pandemic ebbed and students returned to classrooms.

India’s edtech companies have had two successive exceptional years of hyper-growth but are finding it hard to sustain the momentum this year, with schools, colleges and physical tuition centres resuming classes.​

Source: https://www.moneycontrol.com/news/business/startup/byjus-owned-great-learning-under-fire-for-mis-selling-iit-bombay-course-8826691.html