Inside Story: How Byju Raveendran Ruined a $22 Billion EdTech Empire

In a plot twist fit for a Netflix special, Byju Raveendran, the mastermind behind the once-unstoppable edtech giant Byju’s, announced to the world that his startup’s valuation now stands at a spectacular... zero. Yes, you read that right—zero. The company, once valued at $22 billion, now finds itself entangled in insolvency proceedings, proving that not all meteoric rises come with safe landings. It’s the kind of dramatic downfall that makes even Bollywood tragedies look like bedtime fairy tales.

When "Go Big or Go Home" Goes Terribly Wrong

Byju’s wasn’t just any startup—it was India’s most valuable unicorn. With a market valuation that peaked at $22 billion, Byju’s seemed unstoppable. Under the charismatic leadership of Byju Raveendran, the edtech company embarked on an acquisition spree between 2020 and 2022, purchasing more than 24 companies, including:

• WhiteHat Jr. for $300 million
• Aakash Educational Services for nearly $1 billion
• Epic! for $500 million
• Osmo, an early childhood learning platform, for $120 million

Raveendran aimed to expand Byju’s reach into international markets and dominate both offline and online education spaces. However, in hindsight, this buying spree looks more like a game of Monopoly that spiraled out of control. “We thought we could be the Amazon of education,” he admitted. “Turns out, we were more like the Titanic—big, expensive, and headed straight for an iceberg.”

The Great Escape: Investors Ghosting Faster than Tinder Matches

At its peak, Byju’s attracted a star-studded list of backers, including BlackRock, Tencent, Sequoia India (now Peak XV), Chan Zuckerberg Initiative, Prosus Ventures, and General Atlantic. The company raised more than $5 billion in funding from over 100 investors, and there were plans for an IPO in early 2022, with investment bankers predicting valuations as high as $50 billion.

But the dream began to unravel when the Russia-Ukraine war disrupted global markets, causing venture capitalists to tighten their wallets. “More than 100 investors urged us to push into 40 markets,” Raveendran lamented, “but when things got tough, many ran away.”

By late 2022, Prosus Ventures, Peak XV, and the Chan Zuckerberg Initiative resigned from Byju’s board, citing governance concerns. Deloitte, the company’s auditor, followed suit, leaving the company in a state of disarray. With governance issues flagged and investor confidence shattered, fundraising efforts ground to a halt.

Public Valuation? More Like Public Humiliation

Initially riding the online learning wave during the pandemic, Byju’s seemed destined for long-term success. With schools shuttered, students turned to online platforms, and Byju’s boomed. But as the world reopened, demand for online education plummeted, and Byju’s revenues fell sharply. Reports indicated that the company was delaying loan payments and defaulting on obligations, including a $1.2 billion term loan.

As insolvency proceedings began, Raveendran had no choice but to concede: “It’s worth zero. What valuation are we even talking about? It’s worth nothing.”

The company that once planned to make a grand IPO debut now finds itself navigating bankruptcy and debt restructuring talks. Key investors, including Silver Lake and the Canada Pension Plan Investment Board, are watching helplessly as their once-promising investment slips away.

From Hero to Zero: But Raveendran Still Isn’t Done

Despite the financial wreckage, Raveendran is not ready to throw in the towel. “I have nothing to lose,” he told reporters. “I came from a small village. I invested everything I had into this.” His words reflect the determination of an entrepreneur unwilling to admit defeat—though critics may argue that he’s simply clinging to a sinking ship.

Lessons from the Byju’s Fiasco: How Not to Build a Startup

The spectacular rise and fall of Byju’s offers invaluable lessons for entrepreneurs and investors alike:

1. Overexpansion is risky: Acquiring over 24 companies without a sustainable integration plan proved disastrous.
2. Debt can be a ticking time bomb: Byju’s failure to service its $1.2 billion loan was a key factor in its downfall.
3. Investor sentiment is fickle: When times were good, investors pushed the company to grow at breakneck speed. But as soon as markets soured, they jumped ship.
4. Governance matters: Poor oversight and a lack of transparency caused major backers and auditors to abandon the company at critical moments.

What’s Next? A Bollywood Remake or a New Beginning?

The collapse of Byju’s has stunned the startup ecosystem, but Raveendran’s optimism remains intact. “Every end is just the start of something new,” he quipped, as if channeling a life coach more than a CEO of a company in crisis.

While Byju’s current valuation may be zero, Raveendran insists that the company can still stage a comeback. Whether this marks the beginning of a redemption arc or the final act of a tragicomedy remains to be seen. What’s clear is that the edtech giant’s legacy will live on—not as a symbol of innovation, but as a case study in business schools on the perils of overambition and unsustainable growth.

So, here’s to Byju’s: a $22 billion dream turned into a zero-dollar lesson. Entrepreneurs, investors, and students—grab some popcorn and take notes, because this is one business saga you don’t want to miss.

TICE TV PODCAST: Byju’s: From Billion-Dollar Dreams to the Zero Rupee Reality Show