Byju Raveendran, the founder and former CEO of Byju’s, recently revealed that the ed-tech giant, once valued at $22 billion, now has a “zero” net worth. In a statement to journalists, Raveendran emphasized the financial challenges the company faced due to its rapid expansion and acquisition of over 24 startups, leading to a crisis in 2022—the same year the company had planned to go public.
Raveendran explained that investors had initially pushed the company to expand aggressively into 40 more markets but later withdrew their support after the global market downturn triggered by Russia’s invasion of Ukraine. He also accused key backers, including Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative, of abandoning the company’s board, making it difficult to secure further funding.
In recent months, Byju’s has faced several setbacks, including job cuts and a significant decrease in valuation. Investors have accused Raveendran of corporate governance issues. Additionally, the company is dealing with insolvency proceedings initiated by an Indian tribunal after the Board of Cricket Control in India (BCCI) filed a complaint, claiming that Byju’s failed to pay $19 million for a sponsorship deal. As a result, the company’s assets were frozen, and Raveendran was suspended.
Despite the challenges, Raveendran remains hopeful for Byju’s recovery. In an interview at the World Economic Forum last year, he admitted to making several mistakes but expressed optimism for the company’s future.