Byju Raveendran’s net worth down to zero
A year ago, the boss of edtech major Byju’s, Byju Raveendran boasted a net worth of Rs 17,545 crore ($2.1 billion), landing him on numerous prestigious ‘world’s richest’ lists. However, the most recent Forbes Billionaire Index for 2024 reveals that his net worth has plummeted to zero.
This significant decline follows a series of crises that have rocked the once high-flying startup, marking a considerable fall from grace for the poster child of India’s startup ecosystem.
Commenting on Byju’s absence from the list, Forbes remarked, “Only four individuals from last year’s roster failed to make the cut this time, including former edtech standout Byju Raveendran, whose company Byju’s faced multiple crises, resulting in BlackRock devaluing its valuation to $1 billion, a mere fraction of its peak valuation of $22 billion in 2022.”
Established in 2011, Byju’s quickly ascended to become India’s most valuable startup, reaching a peak valuation of $22 billion in 2022. Raveendran’s innovative learning app revolutionised the education sector, serving students from elementary to MBA aspirants.
However, recent financial disclosures and mounting controversies have severely impacted the company’s prospects.
The challenges facing the company became apparent with the belated release of Byju’s financial results for the fiscal ending March 2022, revealing a substantial net loss exceeding $1 billion. This dire financial situation led BlackRock, a major investor, to significantly downgrade its valuation of Byju’s to just $1 billion, marking a sharp decline from its previous peak valuation.
In addition to financial troubles, Byju Raveendran has faced intense scrutiny due to his company’s dwindling fortunes. Shareholders, including Prosus NV and Peak XV Partners, recently voted to remove Raveendran as CEO, intensifying a struggle over the future of the once-thriving online tutoring startup, which is now struggling to survive.
Furthermore, Byju’s overseas investments have drawn the attention of the Enforcement Directorate (ED). Prior to issuing a lookout circular against its founder, the ED sent show-cause notices to Byju’s parent company, Think & Learn, concerning alleged violations of the Foreign Exchange Management Act (FEMA) amounting to over Rs 9,362 crore.
