Byju Raveendran, a prominent figure in India’s startup ecosystem, experienced a dramatic reversal in fortunes over the past year. Once touted as one of the wealthiest individuals with a net worth of ₹17,545 crore ($2.1 billion), he graced numerous esteemed lists of the globe’s richest people. However, the recent release of the Forbes Billionaire Index for 2024 revealed a startling reality: Raveendran’s net worth has plummeted to zero. This sharp decline mirrors the tumultuous journey of Byju’s, the edtech startup Raveendran founded in 2011.
Byju’s skyrocketed to prominence, boasting a staggering peak valuation of $22 billion in 2022, making it India’s most valuable startup. The company’s innovative learning app revolutionized the education sector, catering to students from primary school to MBA aspirants. Yet, behind the facade of success, Byju’s faced mounting challenges. Financial disclosures for the fiscal year ending March 2022 unveiled a staggering net loss exceeding $1 billion, exposing the company’s precarious financial position. Investor confidence waned, with major shareholder BlackRock slashing Byju’s valuation to a mere $1 billion, a fraction of its former glory. The downfall of Byju’s was further exacerbated by mounting controversies.
Shareholders, including Prosus NV and Peak XV Partners, escalated tensions by voting to oust Raveendran as CEO, signaling a power struggle within the company. Moreover, the Enforcement Directorate’s scrutiny intensified as allegations surfaced regarding Foreign Exchange Management Act violations amounting to over ₹9,362 crore against Byju’s parent firm, Think & Learn. Raveendran’s fall from grace serves as a cautionary tale in the volatile world of startups, where rapid ascents can be matched by precipitous declines. The once high-flying entrepreneur now finds himself grappling with the consequences of missteps and crises that have casted a shadow over his once-thriving enterprise.