Oct 11, 2023
By: Katya NaiduLast year, Byju Raveendran’s wealth stood at $3.3 billion when Byju’s was India’s only decacorn. Come 2023, thanks to valuation markdowns, he is out of the Hurun India rich list which compiles individuals with a wealth of over ₹1,000 crore.
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That’s not the only list that Byju’s exited. This year’s Kantar’s top 75 brands also dropped edtech from its list. It was on No 19 in 2022, with a brand value of $5.5 billion.
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Not too long back, Byju’s was a celebrated edtech brand that promised to change the way India teaches. During the pandemic when e-learning peaked, it was perceived to be unstoppable. In a post-pandemic world however it has to adjust to the new-normal and funding winter.
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While most startups suffered from funding crunch, Byju’s also came under the scanner for its high-powered sales tactics leading to complaints from the parents of their subscribers.
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Byju’s also pursued an aggressive growth strategy by acquiring Aakash Coaching Classes, Epic and Great Learning – which stressed its balance sheets. It had to cut around 2,500 jobs to consolidate its business.
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As funds became scarce, it also delayed announcing financial results – sometimes by over eight months. It’s expected to file its FY22 and FY23 earnings with the RoC.
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Some of its key investors — Peak XV Partners formerly Sequoia Capital India, Prosus and Chan Zuckerberg Initiative resigned from Byju’s board.
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Its largest shareholder Prosus, which invested over half a billion dollars in the company, gave reasons for its exit. It said that Byju’s disregarded advice regarding legal, financial and corporate governance matters.
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It’s currently engaged in a legal battle with one of its lenders in the US over a $1.2 billion term loan. It’s known to be looking for an out-of-court settlement for the same.
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