Byju’s Falls from $22 Billion to Zero: Byju Raveendran Says, “We Will Rise Again and Bring Back Former Employees”
Byju’s founder, Byju Raveendran, has announced plans to relaunch the debt-ridden edtech company soon. In a post on social media platform X, he shared an old picture of himself and wrote, “We will rise again. I remember the spark in my students’ eyes.”
At its peak, Byju’s was India’s largest edtech startup. By 2022, it was valued at $22 billion (approximately ₹1.88 lakh crore). However, due to financial mismanagement and other challenges, the company’s net worth dropped to zero by 2024.
Byju’s Key Announcements
- Rehiring Former Employees
- Raveendran stated that when Byju’s relaunches—sooner than expected—the company will prioritize rehiring former employees.
- He acknowledged that his optimism might seem unrealistic to some but emphasized that being bold and unconventional is necessary to become number one.
- Perspective on Success and Failure
- He noted that things are never as good or as bad as they seem, and the truth usually lies somewhere in between.
- Reflecting on Byju’s 20-year journey, he described it as 17 good years, 2 bad years, and 1 ugly year—no filters, just facts.
- Employment and Salaries
- Over nine years, Byju’s hired 2.15 lakh graduates, offering them a minimum annual salary of ₹6 lakh, regardless of their background.
- Raveendran called providing young professionals with their first career opportunity the greatest honor of his life.
How Byju’s Collapsed Due to Mismanagement
The Rise
- Byju Raveendran founded Byju’s as a small education platform in 2011, initially offering coaching classes.
- In 2015, the company launched its app, which quickly gained popularity for its interactive learning, simple language, and use of technology.
- The COVID-19 pandemic (2020-21) increased demand for online education, and Byju’s capitalized on this boom.
- Aggressive marketing (with Shah Rukh Khan as the brand ambassador) and acquisitions (such as WhiteHat Jr. and Aakash) pushed its valuation to $22 billion by 2022, making it India’s most valuable startup.
The Decline
- After 2022, Byju’s began losing momentum.
- The company had taken on massive debt to fund its rapid expansion and acquisitions, which became a financial burden.
- Financial reports were delayed, and for FY 2021-22, Byju’s reported a loss of ₹8,245 crore.
- Investors raised concerns over a lack of transparency.
- The company faced accusations of aggressive sales tactics and failure to issue refunds, leading to a loss of customer trust.
The Collapse
- By 2023, Byju’s situation worsened.
- The Enforcement Directorate (ED) launched an investigation into FEMA (Foreign Exchange Management Act) violations.
- Board members and auditors (Deloitte) resigned.
- U.S. lenders filed for bankruptcy proceedings.
- The company laid off thousands of employees, and its valuation plummeted.
The End
- By 2024, Byju’s valuation had dropped to zero.
- Legal battles, mounting debt, and operational instability drove the company to collapse.
- It is currently undergoing insolvency proceedings.
Despite the downfall, Byju Raveendran remains hopeful about a revival. Only time will tell if Byju’s can rise from the ashes.
