Byju Raveendran once featured prominently on prestigious ‘globe’s richest’ lists with a net worth of ₹17,545 crore ($2.1 billion) a year ago, now finds himself without any valuation according to the recently released Forbes Billionaire Index 2024. This drastic decline signifies a remarkable fall from grace for the entrepreneur, reflecting the tumultuous journey of his startup.
The decline in Raveendran’s net worth comes amidst a series of crises that have shaken the foundations of his once high-flying startup, Byju’s. Only four individuals, including Raveendran, dropped off last year’s list, a notable indication of the magnitude of the challenges faced by the edtech giant.
Founded in 2011, Byju’s rose rapidly to become India’s most valuable startup, reaching a peak valuation of $22 billion in 2022. The company’s innovative learning app revolutionized the education sector, catering to students from primary school to MBA aspirants. However, recent financial disclosures and controversies have led to a significant downfall in the company’s fortunes.
Byju’s financial struggles came to light when it reported a substantial net loss exceeding $1 billion for the fiscal year ending March 2022. This disappointing performance prompted BlackRock, a major investor, to slash the company’s valuation to a mere $1 billion, marking a staggering decline from its previous peak.
Criticism towards Byju Raveendran has intensified as the company’s troubles persist. Shareholders, including Prosus NV and Peak XV Partners, recently voted to remove Raveendran as CEO, escalating tensions over the future of the online tutoring startup.
Additionally, Byju’s foreign investments have drawn scrutiny from the Enforcement Directorate. Before issuing a lookout circular against its founder, the ED issued show cause notices to Byju’s parent firm, Think & Learn, over alleged violations totalling more than ₹9,362 crores under the Foreign Exchange Management Act.
The sharp decline in Byju Raveendran’s net worth serves as a stark reminder of the unpredictable nature of the startup ecosystem and the challenges faced by even the most successful ventures.