July 24, 2024
In the bustling world of Indian start-ups, Byju Raveendran’s name once shone brightly. His edtech venture, Byju’s, soared to unicorn status, valued at an impressive $22 billion. But today, the narrative has taken a darker turn, as the company grapples with crises that serve as a cautionary tale for others.
The Rise and Ambitions
Founded in 2011, Byju’s initially focused on online tutoring for schoolchildren and competitive exam preparation. The company expanded rapidly, introducing learning apps in various Indian languages. Its revenue streams included selling educational hardware like tablets and SD cards.
During the pandemic, Byju’s continued its ascent. However, financial irregularities and missed deadlines began to surface. By 2022, the company reported a staggering consolidated loss of ₹82.3 billion ($1 billion). Customers accused Byju’s of aggressive sales tactics, putting vulnerable individuals’ savings at risk.
Leadership Turmoil and Legal Battles
On February 23, 2024, shareholders voted to remove Raveendran as CEO during an extraordinary general meeting (EGM). Allegations of mismanagement and failures led to this decision. Raveendran’s family contested the vote’s validity in court, temporarily halting the EGM resolutions’ implementation.
Lawsuits piled up, investors grew restless, and India’s financial crimes agency launched an investigation. Layoffs and delayed salaries added to the turmoil. Byju’s audited financials for 2023 remain pending.
Foreign Exchange Violations and Tears
Recently, a probe agency raided Byju’s offices, linking the company to potential foreign exchange violations. Raveendran, once hailed as a visionary, reportedly broke down in tears as the crisis deepened. Investment firm BlackRock slashed Byju’s valuation to $1 billion.
Byju Raveendran’s journey from unicorn to crisis underscores the need for transparency, financial prudence, and ethical practices in India’s evolving edtech landscape.
