In a candid revelation, Byju Raveendran, the founder of the once-mighty edtech company Byju’s, admitted that his startup, once valued at a staggering $22 billion, is now effectively worth “zero.” Speaking to reporters on Thursday, Raveendran took responsibility for the company’s decline, acknowledging a series of missteps that led to its current state.
Raveendran’s aggressive strategy to acquire over two dozen startups in a bid to penetrate new markets backfired when funding sources dried up in 2022. The company had ambitious plans to go public, with some investment bankers valuing it as high as $50 billion. However, Raveendran noted that many of his 100-plus investors urged him to aggressively expand into up to 40 markets, only to pull back as global markets faltered after Russia’s invasion of Ukraine.
“The investors ran away,” he lamented, citing the withdrawal of three key backers—Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative—as pivotal moments that hindered Byju’s ability to secure new funding. These departures, along with the exit of auditor Deloitte, were attributed to governance issues within the company.
Currently undergoing insolvency proceedings, Raveendran no longer controls the company but remains hopeful for a comeback. “I have nothing to lose. I came from a small village and invested everything I had into the startup,” he said, reflecting on his commitment to his vision.
Once celebrated as India’s most valuable startup, Byju’s has garnered investment from heavyweights like BlackRock, UBS, and Tencent, raising over $5 billion to date. Despite the challenges ahead, Raveendran’s determination to rebuild remains strong as he navigates this turbulent chapter in his entrepreneurial journey.
