From India's biggest startup to the brink of bankruptcy, this edtech startup once valued at $22 billion
Once India's most valuable startup, Byju's has seen its fortunes plummet, now facing bankruptcy. The company, which was valued at $22 billion, is now embroiled in insolvency proceedings.
![From India's biggest startup to the brink of bankruptcy, this edtech startup once valued at $22 billion](https://cdn.zeebiz.com/sites/default/files/2024/07/17/305365-byju-4.jpg?im=FitAndFill=(1200,900))
The edtech giant Byju's is now undergoing insolvency proceedings after failing to pay Rs 158.9 crore to the Board of Control for Cricket in India (BCCI). This failure led BCCI to file a complaint with the National Company Law Tribunal (NCLT), prompting the start of insolvency proceedings. Despite its current dire state, Byju's was once India's crown jewel in the startup ecosystem, with a valuation soaring to $22 billion, now reduced to zero. This article explores the rise and fall of Byju's and the journey of its founder, Byju Raveendran.
Byju Raveendran's net worth plummets to zero
Byju Raveendran hails from Azhikode, a small village in Kannur district, Kerala. His early education was in a Malayalam medium school where his parents were teachers. Known for his academic prowess, Raveendran was expected to achieve great things. His ascent was rapid, and at one point, his net worth reached Rs 17,545 crore.
A Global Tech Leader
In September 2020, Byju Raveendran was featured in Fortune Magazine's Global 40-Under-40 Technology List. However, this recognition was short-lived. Over the past year, his net worth has plummeted to zero due to a severe cash crunch at Byju's. According to the Forbes Billionaire Index 2024, Raveendran's net worth fell from Rs 17,545 crore ($2.1 billion) to nothing.
Academic brilliance and early career
After completing his graduation, Byju worked as an engineer in a UK-based shipping company. During a vacation in India, he assisted friends in preparing for the IIM entrance exam, scoring a perfect 100 percentile himself. Despite his success, he chose not to pursue an IIM degree, opting instead to start coaching classes in 2005.
From local classes to massive seminars
Initially, Byju conducted small coaching sessions, which quickly grew in popularity. Eventually, he had to use larger venues, including teaching 25,000 students simultaneously at Delhi's Indira Gandhi Indoor Stadium. By 2011, his student base had grown from 40 to 1,000.
Launching Byju's
In 2011, Raveendran founded Think & Learn, the parent company of Byju's. He launched 'Byju's - The Learning App' in 2015, which revolutionised education with its video-based learning programs.
Rapid growth and expansion
The Byju's app capitalised on the growing popularity of smartphones, and in just seven years, Byju Raveendran became a billionaire. The app provided both free and paid educational content, and in 2017, Bollywood star Shahrukh Khan became its brand ambassador. By 2019, Byju's became the official sponsor of the Indian cricket team.
Peak Success
By September 2020, Byju's had 64 million subscribers. Raveendran aimed to transform education in India as Disney did for entertainment. The app's animated videos and games made learning engaging and fun, covering everything from school curricula to entrance exam preparation.
The Downfall
In 2021, Byju's overtook Paytm and acquired Aakash Education Services for Rs 7,300 crore. However, this aggressive expansion, fueled by heavy borrowing, proved disastrous. The company’s focus on rapid growth without sustainable strategies led to its downfall.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/personal-finance/photo-gallery-top-6-equity-mutual-funds-where-inr-rs-1000-monthly-sip-has-grown-to-up-to-22372796-crore-calculator-nippon-franklin-hdfc-icici-pru-elss-tax-saver-flexi-india-lump-sum-cagr-aum-nav-rate-return-xirr-310929](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/08/27/314421-currency-500-pixabay-new.jpg?itok=ghDSnPwF)
Power of Rs 1,000 SIP: Top 6 mutual funds where Rs 1,000 monthly SIP has grown to up to Rs 2.24 crore since funds' inception
![https://www.zeebiz.com/personal-finance/photo-gallery-sbi-mutual-funds-with-50-sip-returns-in-1-year-calculator-current-value-of-inr-rs-21000-monthly-sip-psu-nifty-bse-index-infra-small-long-cap-psu-hal-bel-hdfc-lt-airtel-gail-pfc-mm-310807](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/08/26/314278-rupee-pixabay-take-3.jpg?itok=g5J7vAoP)
Top 7 SBI mutual funds that have given over 50% annualised SIP returns in 1 year; get value of Rs 21,000 monthly SIP in each fund
![https://www.zeebiz.com/personal-finance/photo-gallery-top-7-small-cap-mutual-funds-with-highest-best-sip-returns-in-1-year-calculator-get-maturity-value-of-rs-inr-21000-monthly-investment-nifty-tri-bse-tata-lic-psu-iti-mahindra-bandhan-bank-india-311046](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/08/27/314563-note-coin-pixabay-take-2.jpg?itok=UDT1knxa)
Top 7 small cap mutual funds with up to 85% SIP returns in 1 year: Know how Rs 21,000 monthly SIP has performed in each fund
06:30 PM IST