Byju's founder, Byju Raveendran, has been removed from the Forbes Billionaire list 2024. Just last year, his net worth amounted to around $2.1 billion, but now it has plunged to zero due to the company's financial crisis.
Just one year ago, edtech startup founder, Byju Raveendran was one of the thriving entrepreneurs in the nation, with a net worth of around Rs. 17,545 crores ($2.1 billion). He was included in several global billionaire lists and was also on the Forbes 2023 list of billionaires. However, he was dropped from the list in 2024 amid the Byju financial crisis.
Founded in 2011 by Byju Raveendran, once the poster child of online education in India, Byju is now struggling to pay its employees and keep the business running. Several board members and investors have left the company.
In 2022, the company was valued at $22 billion. However, that number has shrunk down to a mere $200 million due to various setbacks such as lawsuits, poor financial decisions post-pandemic, and a FEMA violation.
Commenting on Byju's drastic fall from the billionaire list, Forbes said, "Only four people from last year's list dropped off this time, including former edtech star Byju Raveendran, whose firm Byju's was enveloped in multiple crises and its valuation was marked down by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022.
The company is letting go of thousands of employees and seems unable to find a way to keep the money flowing inwards, given the declining demand for online studying post-lockdown.
The outcome of Byju's situation is an example of improper management of finance and planning. The company made numerous rash decisions and ultimately depleted its own wealth. Last month, the key shareholders of the company, Prosus NV and Peak XV Partners, voted to remove Byju Raveendran as the CEO of Byju's.
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