Byju Raveendran Fall from India’s Richest List: Byju’s Struggles

Renowned edtech entrepreneur Byju Raveendran, a regular fixture on India’s Forbes list of 100 richest individuals, notably did not cut the 2024 edition. 

His absence stems from significant challenges faced by his company, Byju’s, including prolonged financial difficulties, a wave of board member resignations, and other operational issues.

Byju Raveendran and Byju’s Journey:

Byju Raveendran co-founded the popular learning app Byju’s, which emerged as India’s most valuable startup in 2011, garnering widespread acclaim and investment.

The company recently released its long-awaited financial results for the fiscal year ending March 2022, revealing a staggering net loss exceeding $1 billion. 

This development led to BlackRock’s sharp devaluation of Byju’s, slashing its valuation to approximately $1 billion, a stark decline from its $22 billion valuation in 2022. Amid mounting financial woes, shareholders voted in February to remove Raveendran from his CEO position.

Operational Challenges:

Byju’s faced additional setbacks, including significant layoffs affecting over 500 employees due to delayed salary payments spanning three months. A spokesperson cited ongoing business restructuring efforts to streamline operations, reduce costs, and enhance cash flow management.

Compounding the company’s woes, the National Company Law Tribunal (NCLT) received an investor plea to halt Byju’s rights issue. As reported by Moneycontrol, the tribunal’s president is expected to assign the case to a third member for further review.

Extraordinary General Meeting (EGM):

To address dissent among investors regarding Byju’s $200 million rights issue, Raveendran invited hesitant stakeholders to participate in the upcoming extraordinary general meeting (EGM), signaling an effort to regain investor confidence.

Get all the latest news on Indian daily post