Byju’s Founder Ravindran’s Network ‘ZERO’: 17,545 Crores to Zero in a Year, Out of Billionaires List, Home Sold to Pay Salary
The financial crunch faced by EdTech company Byju’s, founded by Byju Raveendran, has led to his network hitting zero. Just a year ago, on April 4, 2023, Byju’s network was at $2.1 billion (approximately ₹17,545 crore). This information is provided in Forbes Billionaire Index 2024.
It’s reported that a year ago, Byju’s was included in Forbes’ billionaire list, but this time, four individuals, including Raveendran, have been excluded from last year’s list.
Recently, BlackRock had reduced Byju’s valuation by $1 billion, which is just a fraction of its highest valuation of $22 billion in 2022.
Started as a Mathematics Teacher
Byju Raveendran started his career as a mathematics teacher. When he founded Byju’s in 2011, it rapidly grew to become the most rapidly growing startup.
The company’s valuation in 2022 was declared to be $22 billion, approximately ₹1.84 lakh crore. Byju’s provides services to students from primary level to MBA.
Also Conducting Investigations
ED is also investigating foreign funding received by Byju’s. Recently, the ED issued a lookout circular against Raveendran. Besides, Byju’s parent company, Think & Learn, received a ‘show cause’ notice for violating the Foreign Exchange Management Act (FEMA).
Raveendran Forced to Sell House to Pay Salaries
Recently, there were reports of financial difficulties faced by Byju’s, leading its founder Raveendran to sell his and his family members’ houses to pay employees’ salaries. He mortgaged two houses in Bengaluru for approximately ₹100 crore and paid salaries to around 15,000 employees. This claim has been reported in several media outlets.
Recent Events Unfolded with BYJU’S
In the past few days, several incidents have unfolded with BYJU’S, showcasing its deteriorating situation. The Board of Control for Cricket in India (BCCI) initiated action against Byju’s. Byju’s is accused of defaulting on a payment of ₹158 crore. This notice regarding the default payment was sent to Byju’s on January 6th.
