Byju Raveendran, who was valued at ₹17,545 crore ($2.1 billion) a year ago and was prominently listed in various prestigious ‘world’s richest’ compilations, now finds his net worth reduced to zero, as per the latest Forbes Billionaire Index 2024. This substantial decline follows a series of crises that have shaken the previously successful startup, signaling a remarkable downfall for the leading figure of India’s startup landscape
Forbes note Byju’s fall from the list, stating, “Only four people from last year’s list drop off this time, including former edtech star Byju Raveendran, whose firm Byju’s was envelope in multiple crises and saw its valuation marked down by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022.”
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Byju’s: From Changing Education to Facing Money Problems
Founded in 2011, Byju’s rapidly ascended to become India’s most valuable startup, boasting a peak valuation of $22 billion in 2022. Raveendran’s brainchild revolutionised the education sector with its innovative learning app, catering to students from primary school to MBA aspirants. However, recent financial disclosures and mounting controversies have dealt a severe blow to the company’s fortunes.
The company’s woes came to light when Byju’s finally released its long-delayed results for the fiscal year ending March 2022, unveiling a staggering net loss exceeding $1 billion. This dismal financial performance led to BlackRock, a major investor, slashing its valuation of Byju’s to a mere $1 billion, marking a precipitous decline from its peak valuation.
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Byju Raveendran Faces Shareholder Revolt and ED Scrutiny Amid Company’s Turmoil
Byju Raveendran has faced intense criticism for the company’s declining fortunes. The company’s shareholders, including Prosus NV and Peak XV Partners, last month voted to oust Mr Raveendran as CEO, escalating a battle over the fate of the once high-flying online tutoring startup that is fighting to remain in business.
Byju’s foreign investment has also come under the scanner of the Enforcement Directorate. Before the lookout circular against its founder, the ED issued showcause notices to Byju’s parent firm Think & Learn over alleged violations worth over ₹ 9,362 crore under the Foreign Exchange Management Act.
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