E-Paper
Byjus is worth zero now: Founder Byju Raveendran on his once $22 billion edtech giant
Byju Raveendran declared Byju's net worth as zero, citing rapid expansion and investor withdrawals that led to financial turmoil and insolvency proceedings.
Byju Raveendran, the Indian mathematics teacher who founded the prominent ed-tech platform Byju's, has made a startling declaration regarding the company's financial status. In a recent statement, Raveendran asserted that Byju's, once valued at a staggering $22 billion, now has a net worth of "zero." He bluntly stated, "It's worth zero. What valuation are you talking about? It's worth zero."
(Also read: Byju Raveendran breaks silence after leaving India: ‘Did not run to Dubai, here because…’)
Rapid expansion leads to crisis
According to a report by TechCrunch, Raveendran's remarks were made during an interaction with journalists, where he reflected on the rapid expansion and aggressive acquisition strategy that the company undertook. Byju's acquired more than 24 startups in a bid to dominate the ed-tech market, but this expansion has led to a severe financial crisis that emerged in 2022, coinciding with plans for the company to go public.
Raveendran highlighted that the company’s investors had encouraged the aggressive expansion into 40 new markets. However, these plans were abruptly halted as the global economy faced turmoil following Russia's invasion of Ukraine. He lamented that his three main backers—Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative—“ran away” from the company's board last year, which made it increasingly difficult to secure additional funding.
(Also read: ‘Worst founder in India’: This ‘greedy’ CEO receives dubious distinction from Reddit voters)
The past few months have been challenging for Byju's, with significant setbacks including widespread job cuts and a declining valuation. Investors have begun to raise alarms about Raveendran’s leadership, accusing him of lapses in corporate governance. This scrutiny has intensified in light of recent events.
Adding to the company's woes, an Indian tribunal has initiated insolvency proceedings against Byju's following a complaint filed by the Board of Control for Cricket in India (BCCI). The board claimed that Byju's failed to complete a payment of $19 million for a sponsorship deal. As a result, the company’s assets have been frozen, and Raveendran has been suspended from his position.
Hope for the future
Despite these setbacks, Raveendran remains hopeful about Byju's future. He expressed his desire for the company to make a comeback someday. Reflecting on his journey, he acknowledged in an interview last year at the World Economic Forum in Davos that he had made his “fair share of mistakes.”
