There was a time when Byjus was the top edtech startup in India, but not so, just one year back in 2023 its valuation was $22 billion which made Byju’s founder Byju Raveendran, the youngest billionaire in India.
But in 2024 Forbes report showed that Byju Raveendran in no longer a billionaire. The most important thing is that Byju’s founder himself admitted bankruptcy for the first time since when the financial disruptions were going on in the startup.
On October 17, 2024, Byju’s founder revealed everything at an online press conference where he Declared Byju’s bankruptcy, and who was behind this bankruptcy he talked about his Dubai shift and misconceptions or rumors spread about him and he assured, will make the comeback and continue his mission.
So let’s know everything about this startup from bankruptcy to rumors in this article and try to understand everything that clarification Byju Raveedran has given.
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What Did Byju’s Founder Byju Raveendran Say In The Press Conference?
Byju’s founder announcement in the press conference details is below one by one.
Byju’s bankruptcy declaration
On October 17, 2024, in an online press conference, Byju’s founder Byju Raveendran said the edtech startup Buju’s which had a $22 billion valuation just one year before, is now a $0 valuation and simply declared bankruptcy and he mentioned the hands behind this bandruptcy.
Hands behind this bankruptcy:
Raveendran says in that interview this situation came because of 3 investors who ran away when the time got tough. When US lenders called a default and filed in Delaware court all three directors resigned within weeks. Because of these three investors such as GV Ravishankar, managing director at Peak XV Partners, Russell Dreisenstock of Porus and Chan Zuckerberg Initiative’s Vivian Wu’s resignation together made new fundraising impossible and that is why we are here”. Said Byzu’s founder, Byju Raveedran.
They were supporting and investing when we were on boom and they were aiming to raise the company to $100 Billion anyhow. They had no tensions about the students just focused on making benefits in any way. During the peak of Byju’s aggressive expansion in 2020-21, from some investors it was mandated to “expand to 40 markets” and some even aggressively pushed to enter 40 markets simultaneously. They were the real beneficiaries of the growth. Said Raveendran expressing his frustration.
Rs 10,000 Cr debt from US lenders:
Raveendran said, “We took Rs 10,000 debt from US lenders, bought many SMBs, and expanded our business. He said that I was thinking the decision to take debt was good, but when we missed repaying the debt, the US lenders filed a petition in Delaware court. Then, watching this tough situation, all three major investors went away within weeks. And this became the worst decision for me.
BCCI case on Byju’s founder of Rs 158 crore sponsorship deal:
BCCI started a case of bankruptcy against Byju’s because from 2019 to 2022 Byju’s had signed a Titan sponsorship deal with BCCI later extended for another year but the company is not repaying the remaining Rs 158 crore. BCCI appealed in The National Company Law Appellate Tribunal (NCLAPT) for the judgement.
But Byju’s Founder, Byju Raveendran, Said, “We are unable to pay the remaining BCCI’s debt because US-based lenders, represented by Glas Trust Company, objected to the settlement between the us and BCCI, alleging mismanagement and claiming that the money was “tainted” and misappropriated from them.
As of September 26, 2024, The Supreme Court of India has reserved its judgment on a petition challenging the National Company Law Appellate Tribunal’s (NCLAPT) decision to allow the settlement between Byju’s and The Board of Control for Cricket in India (BCCI).
But Byju’s founder said, “I have not made any mistake and I have not even cheated on the company because if it would intention then I would take money from the company and wouldn’t put the whole family’s money back in.
Clarification of misconceptions on his Dubai shift:
Byju’s founder came out to clear the air of misconception on his move to Dubai. Raveendran said, “It’s very unfortunate that people think that I ran to Dubai because I had to… I came to Dubai for a year for my father’s treatment, which caused our ongoing stay, it was the first online press conference he gave after four years since when he was facing financial, governance, and legal troubles mounting on him.
On the company’s trajectory, he affirmed, ” that he will make a comeback, it may not be for a $22 billion company but the comeback is to continue the mission.
Read this also: Fall Of Ola Electric: A Detailed Analysis into Recent Controversies.
FAQs
Who is the real owner of BYJU’s?
The real owner of BYJU’s is Byju Raveendran who has currently moved to Dubai not because he had to but for his father’s treatment. He said in an online conference.
Who invested in BYJU’s?
There are three giant investors who invested in BYJU’s: Peak SV Partners, Porus, Chan Zuckerberg initiative. They are the investors who run away when company faced hardships. Byju Raveendran say.
BYJU’s press conference today?
There is no press conference today but on October 17, 2024, he had come on an online press confernce from Dubai to clarify all the misconceptions were going on about him.
Is Sharukh Khan owner of BYJU’s?
No, Sharukh Khan is not the owner of BYJU’s but was just a promoter. The owner of BYJU’s is Byju Raveendran.
