Byju Raveendran Declares Byju's Worth Zero Amid Financial Crisis - Read Now

Byju Raveendran, the founder of the once-prominent edtech platform Byju's, has made a shocking declaration regarding the company's financial health. In a recent statement, Raveendran asserted that Byju's, which was previously valued at $22 billion, now has a net worth of "zero." He bluntly stated, "It's worth zero. What valuation are you talking about?"

The crisis at Byju's can be attributed to its aggressive expansion and acquisition strategy, which saw the company acquire over 24 startups in an attempt to dominate the education technology market. However, this rapid growth led to severe financial troubles that became evident in 2022, coinciding with plans for the company to go public.

Raveendran noted that investor enthusiasm had initially driven the company's aggressive push into 40 new markets. Yet, these plans were abruptly halted due to global economic instability following the Russia-Ukraine conflict. He expressed disappointment over the withdrawal of his main backers—Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative—who “ran away” from the company’s board last year, complicating efforts to secure further funding.

Recent months have brought significant challenges for Byju's, including widespread layoffs and a declining valuation. Investors are increasingly questioning Raveendran’s leadership, citing lapses in corporate governance and management practices.

Adding to the turmoil, an Indian tribunal has initiated insolvency proceedings against Byju's after a complaint from the Board of Control for Cricket in India (BCCI). The BCCI alleged that Byju's failed to fulfill a $19 million payment for a sponsorship deal. Consequently, the company's assets have been frozen, and Raveendran has been suspended from his position.

Despite the dire situation, Raveendran remains optimistic about Byju's future. He hopes for a comeback and has acknowledged his past mistakes, reflecting on the lessons learned during his journey at the World Economic Forum in Davos last year. As Byju's navigates this challenging landscape, the edtech giant's fate remains uncertain.