Byju Raveendran, the founder of India’s edtech giant Byju’s, recently made a stunning revelation about the company’s financial state. Once valued at a staggering $22 billion, Byju’s now stands at “zero,” according to Raveendran. The rapid expansion into multiple markets and aggressive acquisitions of over 24 startups left the company struggling to manage its finances. Investors like Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative withdrew from the board, leaving Byju’s in dire straits.
Raveendran shared his thoughts during a candid discussion with media, lamenting how the company, which had ambitious plans to go public, found itself in deep financial crisis. He attributed much of the decline to unforeseen global events such as the Ukraine conflict, which disrupted international markets and forced a halt in funding. Additionally, key investors distanced themselves from the board, making it difficult to secure new financial backing.
The crisis has resulted in thousands of layoffs, with employees going unpaid for months. In an attempt to stabilize the company, Raveendran mortgaged his own home to pay salaries. The company is now facing insolvency proceedings following a complaint by the Board of Control for Cricket in India (BCCI), which claimed Byju’s defaulted on a $19 million sponsorship payment.
Despite these setbacks, Raveendran remains hopeful about Byju’s future. He acknowledged that mistakes were made, especially during the pandemic-driven boom when online education demand skyrocketed. However, he envisions a potential comeback once the company addresses its governance and financial challenges.
