Byju’s App Removed from Google Play Store Over Payment Dispute: What Happened and What’s Next

 Byju’s App Removed from Google Play Store Over Payment Dispute: What Happened and What’s Next?

By Rahul

27 May 2025

## **Introduction**  

In a shocking turn of events, Byju’s, India’s once-celebrated edtech giant, has faced another setback as its app was temporarily removed from the Google Play Store due to a payment dispute with a vendor. This incident adds to the company’s growing list of financial and legal troubles, raising concerns about its future stability.  

In this blog post, we’ll explore:  

- Why Byju’s app was delisted from the Play Store  

- The ongoing financial struggles of the company  

- Reactions from stakeholders and users  

- What this means for the future of Byju’s  

## **Why Was Byju’s App Removed from Google Play Store?**  

Google temporarily removed Byju’s app from the Play Store due to non-payment of dues to a vendor. Reports suggest that the company failed to settle payments with cloud service provider **Akamai Technologies**, which led to a service disruption.  

### **Key Reasons Behind the Delisting:**  

1. **Non-Payment to Vendor:** Byju’s allegedly defaulted on payments to Akamai, which provides content delivery network (CDN) services essential for app functionality.  

2. **Google’s Policy Violation:** Google Play Store mandates that apps must be fully functional. Since Byju’s app faced service issues due to the payment dispute, Google took it down temporarily.  

3. **Legal and Financial Troubles:** Byju’s has been embroiled in multiple legal battles with lenders, investors, and vendors over unpaid dues, leading to operational disruptions.  

## **Byju’s Ongoing Financial Crisis**  

The removal of Byju’s app is just the latest in a series of financial and legal troubles plaguing the company. Here’s a quick recap of its recent challenges:  

### **1. Loan Default and Legal Battles with Lenders**  

- Byju’s defaulted on a **$1.2 billion loan**, leading to a legal tussle with lenders.  

- The company filed a lawsuit against **Redwood Investments** and other lenders, accusing them of predatory practices.  

### **2. Investor Disputes and Valuation Drop**  

- Major investors like **Prosus** and **Peak XV Partners** (formerly Sequoia India) marked down Byju’s valuation from **$22 billion to $1 billion**.  

- Board members, including representatives from **Chan-Zuckerberg Initiative** and **Peak XV**, resigned over governance issues.  

### **3. Layoffs and Cost-Cutting Measures**  

- Byju’s laid off **thousands of employees** in 2023-24 to reduce costs.  

- The company shut down multiple offices and sold assets to stay afloat.  

### **4. Regulatory Scrutiny and ED Investigations**  

- The **Enforcement Directorate (ED)** conducted raids on Byju’s offices over alleged **Foreign Exchange Management Act (FEMA) violations**.  

- The Ministry of Corporate Affairs (MCA) is also investigating financial discrepancies.  

## **User and Stakeholder Reactions**  

The temporary removal of Byju’s app has sparked mixed reactions:  

### **1. Parents and Students Worried About Access**  

- Many users reported login issues and feared losing access to study materials.  

- Byju’s assured users that existing subscribers could still use the app via direct APK downloads.  

### **2. Investors and Experts Express Concern**  

- Analysts warn that repeated financial mismanagement could erode trust in Byju’s.  

- Some investors are pushing for a complete restructuring of leadership.  

### **3. Competitors Gain Momentum**  

- Rivals like **Unacademy, Vedantu, and Physics Wallah** are capitalizing on Byju’s troubles by offering discounts and better payment plans.  

## **Has Byju’s App Been Restored on Google Play Store?**  

Yes, after resolving the payment issue with Akamai, Byju’s app was reinstated on the Play Store. However, the episode highlights deeper financial instability that could lead to further disruptions.  

## **What’s Next for Byju’s?**  

The future of Byju’s remains uncertain. Here are possible scenarios:  

### **1. Fundraising or Strategic Sale**  

- Byju’s is reportedly in talks with investors for a **$100-200 million funding round**.  

- A partial or complete sale to another edtech firm or private equity player could be an option.  

### **2. More Cost-Cutting and Downsizing**  

- Further layoffs and office shutdowns may be inevitable if revenue doesn’t improve.  

### **3. Legal Resolutions with Lenders**  

- Settling the $1.2 billion loan dispute is crucial to regaining investor confidence.  

### **4. Rebranding and Rebuilding Trust**  

- Byju’s may need a complete rebranding strategy to win back users and investors.  

## **Conclusion**  

The temporary removal of Byju’s app from the Google Play Store is a symptom of deeper financial and operational challenges. While the app is back online, the company’s survival depends on securing fresh funding, resolving legal disputes, and regaining stakeholder trust.  

For now, students and parents should stay cautious while competitors seize the opportunity to fill the gap left by Byju’s struggles.  

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