Byju Raveendran. (File photograph)
Byju’s, which as soon as participated within the FIFA World Cup as a sponsor, has been dealing with a troublesome section
Edtech big Byju’s, which as soon as participated within the FIFA World Cup as a sponsor, has been dealing with a troublesome section and now its founder Byju Raveendran’s internet price has fallen to zero, as revealed within the Forbes Billionaire Index 2024. Last yr, his internet price stood at $2.2 billion (almost Rs 17,545 crore).
Forbes stated, “Only four people from last year’s list dropped off this time, including former edtech star Byju Raveendran, whose firm Byju’s was enveloped in multiple crises and its valuation was marked down by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022.”
Why Byju Raveendran’s Net Worth Has Badly Declined?
Established in 2011, edtech big Byju’s rapidly gained prominence and have become India’s most-invaluable startup when its peak valuation touched $22 billion in 2022.
The firm, which was Byju Raveendran’s brainchild, revolutionised the training sector with its progressive studying app, serving college students from major faculty to MBA aspirants. However, latest monetary disclosures and rising controversies have severely impacted the corporate’s fortunes.
In April 2023, as a serious setback, Byju’s confronted the warmth of the anti-cash laundering company Enforcement Directorate. The ED’s latest searches, as per the company, led to the seizure of assorted ‘incriminating’ paperwork and knowledge.
Following this, in May 2023, BlackRock reduce its valuation to about $8.4 billion.
The challenges deepened as the corporate turned evident with the discharge of Byju’s overdue monetary outcomes for the fiscal yr ending March 2022, which unveiled a considerable internet loss surpassing $1 billion.
Subsequently, in November 2023, Byju’s additionally stated it trimmed its working losses by 6 per cent in 2021-22 for its core on-line training enterprise, whereas income greater than doubled.
During the month, Byju’s was despatched a present-trigger discover by the Enforcement Directorate for an alleged Rs 9,362.35 crore violation beneath the Foreign Exchange Management Act (FEMA).
Following this, in November, tech investor Prosus NV considerably reduce Byju’s valuation to beneath $3 billion, 86 per cent lower than its peak valuation of $22 billion in 2022. The valuation was considerably reduce as a result of firm’s battle with governance and cashflow issues.
Finally, in January 2024, BlackRock slashed Byju’s valuation by 95 per cent to $1 billion. The valuation cuts got here amid media experiences that Raveendran pledged his houses for funds to pay workers, following the exit of a number of Byju executives and board members, prompted by a delay within the firm submitting its 2021/22 monetary outcomes.
