According to Forbes Billionaire Index 2024, Byju Ravindran, the founder and former CEO of Byju's, India's most valuable edtech startup, has experienced a major jolt in his net worth. Reports says that net worth has hit rock-bottom as zero. In 2022 the company's worth was $22 billion, faced multiple crises, leading to a valuation markdown by BlackRock to $1 billion.
Ongoing crisis at Byju's has been marked by a bitter battle between Byju Ravindran and investors, including Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia). The investors have sought a stay on the company's rights issue of $200 million, fearing that it would wipe out the value of their investment. The dispute arises from the company's challenges in securing capital and allegations of accounting irregularities.
Byju Ravindran's net worth, which stood at ₹17,545 crore ($2.1 billion) a year ago, has fallen to zero, reflecting the severe impact of the crises on his personal fortune. The former billionaire, who debuted on Forbes' World Billionaires list in 2020, has faced intense criticism for the company's declining fortunes. In early 2024, shareholders, including Prosus NV and Peak XV Partners, voted to remove Mr. Ravindran as CEO, intensifying the struggle over the fate of the once high-flying online tutoring startup.
The Enforcement Directorate has also scrutinized Byju's foreign investments, issuing show cause notices to its parent firm, Think & Learn, over alleged violations under the Foreign Exchange Management Act. The ED had previously issued a lookout circular against the company's founder, Byju Ravindran.
This sharp decline in Byju Ravindran's net worth marks a notable fall from grace for the face of India's startup landscape. The edtech sector, which saw significant growth during the pandemic, has faced challenges as the world returns to normalcy, with Byju's being one of the most prominent examples of this shift.