Byju’s founder Byju Raveendran, in a virtual media briefing on October 17, admitted that India’s once biggest startup is now worth zero. During his first media call in four years, which lasted over two hours, Raveendran addressed various issues, including the setbacks faced by the ed-tech platform, disputes with the BCCI, fundraising challenges, and his relocation to Dubai.
Once valued at $22 billion, Byju’s has seen its valuation plummet, with Raveendran acknowledging that the core business now generates "zero" revenue. The company is facing multiple litigations, including a $1.2 billion loan repayment dispute with lenders. Raveendran expressed frustration with lenders’ demands for immediate full repayment, which he claims have exacerbated the company's financial woes, but pledged to repay the debt if they cooperate.
Despite its core business struggles, Raveendran stated, during the call, that the company’s subsidiaries, including Aakash and Great Learning, continue to generate over ₹5,000 crore in revenue, driven by student sign-ups.
Byju's founder acknowledged that the company’s downfall was triggered when key investors including Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative, resigned from the board in 2023, crippling its ability to raise funds. Raveendran blamed investors for abandoning the company during its struggles with mounting debt. The company missed deadlines for filing FY21 audited financial statements, further alarming investors.
He said that the investors had supported its expansion but left at the first sign of trouble, stating that investors "didn’t care about students or parents, they just wanted a $100-billion company.” He added that since markets turned in December 2021, only he and his team had been investing in the company. Earlier this year, investors such as Sofina, Peak XV, and Prosus sought legal action to oust him, citing mismanagement and minority oppression. This led to the company being admitted into bankruptcy proceedings.
He revealed that decisions at Byju’s were always made with investor consent, highlighting that while the board had resisted the Aakash acquisition, the board encouraged the Whitehat Jr. deal. While Whitehat Jr. became a problematic investment, Aakash is now viewed as the most successful part of Byju’s 26 acquisitions.
Reflecting on the company’s challenges, he admitted they overestimated growth potential and made mistakes by entering multiple markets simultaneously, which, coupled with the company’s debt, contributed to its decline.
Speaking from his residence in Dubai, Raveendran denied allegations of running away. He clarified that he moved there in 2023 for his father’s medical treatment and has stayed on since, and, stated that he plans to return to India soon, with ambitions to "fill stadiums again." He emphasised that his involvement in India is currently limited due to ongoing litigation but is confident of finding solutions regardless of court outcomes. Raveendran also revealed plans to launch a new tech venture "at half the cost" once his legal matters are resolved, signalling his commitment to stay in the education business and revive it in a new form.
