‘Today, Byju’s Is Worth Zero…’: Founder Raveendran Breaks Silence Over Financial Struggles

Expressing his regret over investors ditching the startup in the face of ongoing challenges, Byju Raveendran, the founder of troubled edtech Byju’s, has spoken to the media for the first time since the company’s financial troubles began. Raveendran underscored the difficult uphill journey of the edtech startup and stated that many ran away when the bad spell started and today, Byju’s is worth zero.

Raveendran stated, "When the US lenders called a default and filed in the Delaware court, all three directors resigned within weeks. Three investors leaving the board together made new fundraise impossible and that is why we're here." He expressed frustration by stating that many ran away during the tough phase as they feared liabilities.

The founder added that the board members who benefitted the most during the rapid growth are now distancing themselves. “The mandate from every investor back (during Byju’s aggressive expansion in 2020-21) then was to grow aggressively. Some even pushed us to enter 40 markets simultaneously. They were the real beneficiaries of that growth. Sequoia made almost an eight times return on a USD 50 million investment in no time,” added Raveendran.

Shedding light on the operational missteps that caused the current crisis, the founder stated, “In hindsight, it's very easy to explain the missteps... we overestimated the potential growth in the next two to three years and entered a lot of markets too soon. It was a little too much, too fast.”

Raveendran said, "Today, Byju's is worth zero. We have lost the confidence of the investors, and the situation has become dire due to our debts and the operational issues we are facing."

However, Raveendran is confident of turning things around and stated that he only needs a one per cent chance to make it work. He said that he would come to India. However, the timing has not been decided as of now.