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Troubled edtech giant Byju's founder and CEO Byju Raveendran has seen his net worth evaporate from Rs 17,545 crore (or $2.1 billion) to nothing, according to Forbes Billionaire Index 2024.
The striking decline not only removes Raveendran from the ranks of the world's wealthiest but also marks a significant downturn for the once-celebrated edtech mogul.
A meteoric rise and sudden fall
Launched in 2011, Byju's rapidly ascended to become India's most valuable startup, peaking at a valuation of $22 billion in 2022. Its learning app, acclaimed for transforming the educational landscape from primary-level students to MBA aspirants, showcased the company's innovative approach.
However, the sheen began to fade as financial discrepancies and mounting controversies came to the forefront, casting a long shadow over its achievements.
Financial turbulence and leadership shake-up
The extent of Byju's financial distress became glaringly apparent with the publication of its delayed financial results for the fiscal year ending March 2022, revealing a net loss exceeding $1 billion. This dire financial situation led BlackRock, a principal investor, to drastically reduce Byju's valuation to just $1 billion.
Amid these challenges, Byju's leadership faced significant upheaval; shareholders, notably Prosus NV and Peak XV Partners, voted to remove Raveendran from his CEO position, reflecting deep-seated concerns over the company's trajectory.
Regulatory scrutiny and restructuring attempts
The company has also been under the microscope of regulatory bodies, with the Enforcement Directorate issuing show-cause notices to Byju's parent company, Think & Learn, for alleged violations of over Rs 9,362 crore under the Foreign Exchange Management Act.
In response to its growing troubles, Byju's initiated a restructuring effort in October 2023 aimed at simplifying operations, cutting costs, and improving cash flow. This move led to the layoff of more than 500 employees, exacerbating the company's woes with additional reports of delayed salary payments.