Byju’s had once been a beacon of success in the Indian ed-tech sector, soaring to great heights during the days of the pandemic and the subsequent shift to online learning. Such were the heights, that several government officials and ministers had started calling it the poster child of India’s startup scene. But come 2023 and 2024, and those days of glory are clearly long behind the firm. And now, founder Byju Raveendran has officially confirmed the same, describing Byju’s current valuation as effectively “zero” in a press conference. This is a steep contrast to its previous peak of $22 billion in 2022.
At its peak, the nine-year-old Byju attracted investments from prominent global firms such as General Atlantic and BlackRock, and the firm quickly leveraged this support to become the most valuable startup in the country. This rapid growth came with its own set of challenges, though, especially as the initial rise in demand began to stabilize. In fact, Byju’s aggressively pursued an expansion strategy that involved acquiring over 24 startups in an effort to diversify its offerings and enter new markets (the edtech firm currently has operations in more than 21 countries).
Raveendran acknowledged that this aggressive expansion (and acquisitions) proved to be a double-edged sword. He admitted that Byju’s had “overestimated potential growth” and entered too many markets at the same time. Due to this, the edtech firm ultimately strained its resources and left it vulnerable to financial fluctuations.
These troubles became apparent when US lenders filed a complaint with the Indian Supreme Court in August, accusing Byju’s of misusing a $1 billion loan. In time, this development went on to lead to insolvency proceedings, marking a significant turning point in the company’s trajectory. Raveendran expressed regret over the aggressive expansion, stating, “It was a little too much, too soon.
Things were made worse as Raveendran’s relationships with key investors deteriorated. Sometime last year, three of the firm’s major backers—Prosus Ventures, Peak XV Partners, and the Chan Zuckerberg Initiative—resigned from the board, citing governance concerns, while Deloitte stepped down from its post as auditor. Raveendran pointed out that the exit of the investors “made it almost impossible for us to do any more fundraising or equity raising.”
Things went from bad to worse as Byju’s went on to face multiple legal challenges, with creditors and investors filing lawsuits against the company for alleged mismanagement. Notably, the Board of Control for Cricket in India (BCCI) accused Byju’s of failing to fulfill a $19 million sponsorship deal. Raveendran, for his part, denied all wrongdoing. “It’s worth zero. What valuation are you talking about? It’s worth zero.” Raveendran said on Thursday, commenting on the firm’s valuation.
