Byju's: From $22 billion valuation to zero

Once valued at $22 billion, Byju’s was a symbol of India’s startup success. 

However, 2024 revealed a harrowing collapse, plagued by mismanagement, legal troubles, and investor disputes. 

CEO Byju Raveendran’s absence from India since late 2023 only added to the chaos, fuelling doubts about leadership accountability.  

‘Lesson in Byju's meteoric rise & fall’

The downfall began with financial red flags: a staggering 81% increase in fiscal year 2022 net losses. 

Blackrock slashed Byju’s valuation by 95%, highlighting the severity of its financial woes. 

The company's acquisition of Aakash institutes, turned sour as Byju’s lost majority control.  

Tensions escalated when Raveendran proposed a contentious rights issue at a 99% valuation haircut, sparking investor rebellion. 

Accusations of shareholder oppression and mismanagement landed in court, stalling operations. 

Meanwhile, US Creditors alleged fund siphoning, further tarnishing Byju’s credibility.  

Operational chaos ensued as unpaid rents led to closures of tuition centres, and layoffs shook the Edtech ecosystem. 

Employees faced months of unpaid salaries, forcing them to accept lower-paying jobs elsewhere. 

By mid-2024, insolvency proceedings began under India’s NCLT, marking a historic low for the company.  

Despite Raveendran’s emotional appeals, the odds remain stacked against Byju’s. 

Legal battles with creditors, governance concerns, and a tarnished reputation leave the company’s future hanging by a thread. 

The fall of Byju’s underscores the need for stronger corporate governance and accountability in India’s startup ecosystem in 2025.

(With inputs from the agencies)