Outlook Business Desk
Byju Raveendran, founder and CEO of edtech company Byju’s, finally spoke out in an emotional LinkedIn post. He started by saying, “I am the Byju of BYJU'S,” and explained what went wrong and how the situation is being misrepresented. He also shared that he has sold everything he owns to keep his mission alive and will now connect directly with the public.
He has accused EY India, GLAS Trust, and court-appointed resolution professional Pankaj Srivastava of working against the company. He called for an investigation into alleged fraud involving these entities. He claimed that he and his team received proof of collusion, accusing EY India, Glas Trust, and Srivastava of acting against Byju’s instead of protecting it.
He denied claims that his family profited from BYJU’S, stating that any money they made from selling shares was reinvested to keep the company running. He shared that he even sold his home and risked his family’s future to save the business.
A US bankruptcy court has ruled that BYJU’S parent company, Think & Learn Pvt Ltd, along with Riju Ravindran (Byju's brother) and others, defrauded US-based lenders of BYJU’S Alpha, Inc. The court ruled in favor of BYJU’S Alpha, also holding Camshaft Capital Fund responsible for fraud. and confirming that Riju Ravindran violated his fiduciary duties as a director.
Raveendran, a Kerala-based teacher and engineer, began tutoring in Bengaluru in 2005. In 2011 he launched a digital platform, Byju's. In 2019, Byju’s became India’s first ed-tech unicorn, surpassing a $1 billion valuation. It expanded rapidly, acquiring companies like Great Learning, Epic and Aakash Educational Services in 2021. By early 2022, it reached a $22 billion valuation.
Byju's started struggling with cash flow and a $1.2 billion loan dispute. In June 2023, investor Prosus cut its valuation by 75%, leading to layoffs and financial issues. Its parent company was also accused of not paying PF dues and was suspended by Google and Facebook for unpaid ads.
Byju's spent heavily on marketing, including sponsoring Indian cricket team, the Football World Cup, and signing Lionel Messi but struggled as offline classes resumed. Byju’s losses rose from Rs 252 crore to Rs 4,564 crore in a year with a $1.2 billion loan default. By 2023, the founder had to mortgage personal assets to pay employee salaries. The company’s valuation has now dropped to $1 billion.
In the post, he hinted at Byju’s future, mentioning AI-driven learning products aimed at transforming education. He promised to communicate directly with stakeholders, saying, “From now on, you’ll hear from me directly, just as we built Byju’s through direct action.”