Byju's Valuation Drops to Zero: Seeks a New Edtech Vision

On Thursday, Byju Raveendran stated investors fled at the first hint of difficulty and that he continues to invest in the company despite Byju's bankruptcy procedures. A Reddit community named Byju Raveendran, the worst Indian founder, for creating a terrible work environment and' scamming' clients. In February, Byju's major investors, including Sofina, Peak XV, Prosus, and General Atlantic, filed a court case to remove Raveendran, citing mismanagement and minority rights violations. Since then, the company has been declared bankrupt. The resignation of three of Byju's key investors—Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative—from the board at the same time in 2023 was one of the most significant setbacks for the ailing edtech startup, making it impossible for the company to secure financing, according to founder Byju Raveendran.

Byju's Downfall: A Tale of Overvaluation and Mismanagement

"Investors were asking for that (management change) without a plan," Raveendran told reporters from his Dubai apartment. "Since the markets turned in December 2021, the only people who have been putting money into the company are us," the edtech's founder stated, arguing he was still the startup's best hope. He was responding to whether, in retrospect, he should have given up ownership of the company to preserve its worth.

Byju's company has also defaulted on significant debt obligations in the United States and India and is currently in bankruptcy proceedings. These concerns have resulted in large-scale layoffs, pending salaries, and a significant decline in the company's price. A Reddit community has elected Byju Raveendran, the worst Indian founder, for creating a toxic work environment, 'scamming' clients with unethical business tactics, and bringing a negative name to the Indian startup scene. The co-founder and CEO of edtech platform Byju's is currently entangled in legal and financial concerns, including charges for fraudulently transferring $533 million to offshore accounts related to him, which he denies.

Did Byju's Owner Fly away to Dubai due to the company's breakdown?

Raveendran was chatting with journalists from his Dubai home. He denied having "fled" to Dubai, claiming that he would return to India after his court proceedings to create another edtech, which he would manage "at half the cost." Raveendran stated that he moved to Dubai for his father's treatment. In terms of his personal life, he said he had two boys and was now the father of a four-month-old baby girl. He described his mental condition as "positive" and expressed enthusiasm for returning to teaching. His greatest strength was transforming pupils' minds in five minutes—"about how they think about learning." During a virtual press conference, although appearing optimistic about a comeback, he stated that Byju's current worth is $0. Investors such as Prosus have written down their stake in the once-highly valued Indian business.

Investors fled at the first hint of difficulty: Founder Raveendran Shifts Blame to Investors

"When the US lenders declared a default and filed in Delaware court, all three directors resigned within two weeks. Those three board members departing together made it nearly difficult for us to conduct any more fundraising or stock raising. Even if they wanted to retire, if a transition or a vote for reconstitution had been scheduled, the firm would not be in this scenario today," Raveendran told reporters at a news conference. "When the US lenders declared a default and filed in Delaware court, all three directors resigned within two weeks. Some of them (board members) got worried about the liabilities that would come with that kind of filing," he added, adding that investors are constantly focused on financial outcomes and 'threw Byju's under the bus' at the first hint of trouble.

"I've been on the verge so many times. For me, it is a purpose rather than a business. "I will make a comeback, and no one can stop me from completing my mission," he stated. He repeated that investors fled at the first hint of difficulty and that he continues to invest in the company despite Byju's bankruptcy procedures. Raveendran said that if people shut down Think & Learn, he would still find ways to teach.

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