A year ago, Byju Raveendran’s net worth stood at ₹17,545 crore ($2.1 billion), earning him a place in numerous prestigious ‘world’s richest’ compilations. However, the recently unveiled Forbes Billionaire Index 2024 reports a significant drop to zero in Mr Raveendran’s net worth.
This sharp decline follows a series of crises that have shaken the once soaring startup, representing a notable fall from grace for the face of India’s startup landscape.
In acknowledging Byju’s removal from the list, Forbes stated, “Only four individuals from last year’s roster are absent this time, among them former edtech sensation Byju Raveendran, whose company Byju’s faced multiple crises, leading to a valuation markdown by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022.”
Established in 2011, Byju’s swiftly rose to become India’s most valuable startup, achieving a peak valuation of $22 billion in 2022. Raveendran’s brainchild disrupted the education sector with its innovative learning application, catering for elementary school to MBA students. However, recent financial disclosures and mounting controversies have severely impacted the company’s prosperity.
Byju’s challenges became evident when the company finally disclosed its long-awaited results for the fiscal year concluding in March 2022, revealing a staggering net loss surpassing $1 billion. This disappointing financial performance prompted BlackRock, a significant investor, to reduce its valuation of Byju’s to a mere $1 billion, marking a steep decline from its previous peak.
Byju Raveendran has faced substantial criticism for the company’s dwindling fortunes. Shareholders, including Prosus NV and Peak XV Partners, voted last month to remove Mr Raveendran as CEO, intensifying a struggle over the fate of the once high-flying online tutoring startup that is striving to sustain its operations.
Furthermore, Byju’s foreign investments have drawn scrutiny from the Enforcement Directorate. Before the lookout circular against its founder, the ED issued show cause notices to Byju’s parent firm, Think & Learn, over alleged violations amounting to over ₹9,362 crores under the Foreign Exchange Management Act.
