Byju Raveendran, founder of Byju’s, once India’s leading ed-tech startup, admitted to overestimating the company’s growth prospects, leading to its current state of insolvency. However, he seems hopeful to rescue the crisis-hit edtech major.
The company, which had reached a $22 billion valuation in 2022 amid the online education boom during the COVID-19 pandemic, now faces significant challenges and has reduced to ‘worth zero’, including mounting debts and allegations of financial mismanagement, which Raveendran denies.
In his first media appearance in 18 months, Raveendran addressed reporters via a video call from Dubai, acknowledging the company’s valuation as effectively “zero”. He attributed Byju’s downfall to an overly ambitious expansion strategy, entering too many markets too quickly.
“We overestimated potential growth, entered (a) lot of markets together. It was little too much, too soon,” Raveendran added.
The company’s financial troubles escalated when US lenders approached India’s Supreme Court in August, alleging improper use of a $1 billion loan by Byju’s. The Supreme Court is yet to rule on Glas’s grievances in dispute with Byju’s.
Once a favourite among global investors, including General Atlantic, Byju’s has struggled with various setbacks, from board resignations to controversies over delayed financial reporting and disputes with international stakeholders.
Raveendran, a mathematics prodigy turned billionaire entrepreneur, remains optimistic about finding a solution despite the crisis, saying, “Whatever is coming, I will find a way out.”
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