Byju Raveendran's net worth plunges to zero; drops off from Forbes Billionaire Index 2024
This staggering fall comes in the wake of a series of challenges faced by the poster boy of Indian start-ups, which once boasted of a peak valuation of $22 billion
The net worth of Byju Raveendran, the founder of edtech giant Byju's, has dramatically slid from a staggering ₹17,545 crore ($2.1 billion) to a mere zero.
This was revealed in the recently released Forbes Billionaire Index 2024.
This staggering fall comes in the wake of a series of challenges faced by the poster boy of Indian start-ups, which once boasted of a peak valuation of $22 billion. However, the fortunes started turning as Byju grappled with delayed financial results, exits by board members and other challenges.
Multiple challenges
On Byju's being dropped from the list, Forbes said that only four people have dropped off from last year’s list this time and that included former edtech star Byju Raveendran, whose company was “enveloped in multiple crises”, which led to its valuation been marked down to $1 billion by BlackRock, which is really a fraction of its peak $22 billion valuation in 2022.
Raveendran's Bjyu, founded in 2011, disrupted India's education sector with its innovative learning app, which catered to students ranging from primary school to MBA aspirants.
However, recent financial disclosures and mounting controversies dealt a severe blow to the company's fortunes. BlackRock, a major investor, significantly reduced its valuation to just $1 billion when Byju's overdue financial results for the fiscal year ending March 2022 revealed a substantial net loss surpassing $1 billion. This was happening as the company struggled to secure capital and amid allegations of accounting irregularities.
To address its financial woes, Byju's initiated a business restructuring exercise in October 2023 to simplify its operating structures, reduce costs, and improve cash flow management. This restructuring led to layoffs of 500 employees. The company is facing further departures due to delayed salary payments for the past three months.
Oust Raveendran move
A lot of the downfall of the iconic start up has been placed at Raveendran’s door.
To add to its troubles,addition, Byju's foreign investments have drawn the attention of the Enforcement Directorate (ED). Before issuing a lookout circular against its founder, the ED sent show cause notices to Byju's parent company, Think & Learn, regarding alleged Foreign Exchange Management Act (FEMA) violations amounting to over Rs 9,362 crore.
According to business analysts, as Byju's struggles to stay afloat, the steep fall of Raveendran's current net worth and his former billionaire status seems to be a grim reminder of the volatile nature of the start-up ecosystem. It remains to be seen if the company manages to get back on its feet and restore investor confidence. The entire business community is avidly watching the developments in this once 'star' start-up.
