From India's biggest startup to the brink of bankruptcy, this edtech startup once valued at $22 billion

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.