Byju Raveendran, the founder of India’s renowned edtech company Byju’s, has experienced a significant downfall, as per the recently released Forbes Billionaire Index 2024. His net worth, once valued at ₹17,545 crore ($2.1 billion), has plummeted to zero, marking a stark contrast to his previous standing as a prominent figure on global rich lists. This decline mirrors the challenges faced by his once-thriving startup.
Byju’s Valuation and Rise to Prominence
Established in 2011, Byju’s swiftly ascended to become India’s most valuable startup, reaching a peak valuation of $22 billion by 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 tarnished its reputation and eroded its value.
Financial Woes and Investor Concerns
Byju’s financial woes surfaced when the company disclosed its long-delayed results for the fiscal year ending March 2022, unveiling a staggering net loss exceeding $1 billion. This poor performance led to a drastic reduction in Byju’s valuation by major investor BlackRock, plummeting to a mere $1 billion from its peak valuation.
Leadership Changes and Regulatory Scrutiny
Amidst the company’s struggles, Byju’s shareholders, including Prosus NV and Peak XV Partners, voted to remove Raveendran as CEO, citing growing concerns over the company’s trajectory. Additionally, Byju’s has come under scrutiny from the Enforcement Directorate over alleged violations worth over ₹9,362 crore under the Foreign Exchange Management Act, further exacerbating its challenges.
Restructuring Efforts and Employee Layoffs
To address its financial woes, Byju’s initiated a business restructuring exercise in October 2023 aimed at simplifying its operating structures, reducing costs, and improving cash flow management. However, this restructuring resulted in the layoff of more than 500 employees, with delayed salary payments prompting further departures.
In 2024, Forbes released its annual World’s Billionaires list, featuring a record 2,781 billionaires with a combined net worth of $14.2 trillion. However, not all billionaires fared well, with a quarter experiencing a decline in fortunes compared to 2023. Additionally, 189 individuals fell below the $1 billion threshold, losing their billionaire status.
