Once boasting a net worth of Rs 17,545 crore, the crown jewel of the startup ecosystem, Byju’s owner Byju Ravindran has witnessed a dramatic fall from grace. In the latest Forbes Billionaire Index list he has been listed at zero. This harsh reality reflects the turbulent path of Byju, the tech behemoth he established, showcasing the fierce competition inherent in the startup realm.
Founded in 2011 as Think and Learn Pvt. Ltd., Byju’s began as a modest venture offering personalized learning experiences, Raveendram, an engineer by profession and a passionate educator at heart, recognized the potential of technology to transform education. His learning app, Byju’s learning app, provides education ranging from primary school to those aspiring for MBAs, offering interactive content and a gamified learning experience. This innovative approach resonated with investors, leading to significant funding rounds and a rapid increase in valuation. By 2022, Byju had reached a peak valuation of a staggering INR 1.63 lakh crore, making it India’s most valuable startup.
However, this dream is almost about to end after its alluring run. While Byju capitalized on the growing demand for online education, especially in the wake of the COVID-19 pandemic, with schools and educational institutions forced to shut down temporarily, this tech company ensured continuity in learning. But after a while, cracks began to appear in Byju’s seemingly invincible facade.
The company faced criticism for its aggressive marketing tactics and commodification of education. Critics argued that the company prioritized profit over pedagogy, leading to uncertainty about the quality of content and its impact on the student’s learning outcomes. Adding fuel to the fire, the turning point for Byju’s growth came with the release of its long-delayed financial results in the fiscal year ending March 2022. The company revealed a harsh truth: a net loss exceeding INR 74,000 crore. This dissatisfactory performance sent shockwaves through the industry and led to BlackRock, a major investor, slashing its valuation from INR 1.63 lakh crore to INR 74,000 crore.
In addition to that other shareholders including Prosus NV and Peak SV Partners voted to oust Raveendran as CEO in 2024, signaling a loss of confidence in his leadership and management abilities. Byju’s foreign investment came under scrutiny from the Enforcement Directorate (ED), which issued show-cause notices over alleged violations un the Foreign Exchange Management Act.
Currently, Byju is locked in a battle for survival. The company is grappling with financial losses, investor skepticism, and regulatory scrutiny. Its effort to regain its former glory will be closely watched by the Indian business community.
The contrast between Ravvendran’s former billionaire status and his current net worth of zero serves as a reminder of the volatile nature of the startup ecosystem. Byju faced numerous challenges, despite its initial success and rapid growth, at the end incompetency to tackle these challenges has led to its downfall. Only time will tell if Byju can successfully navigate its current crisis and reclaim its position as a leader in the Indian tech space.
