Byju Raveendran was on the Forbes Billionaires List last year. (File)
New Delhi:
Byju Raveendran’s net worth a year ago was Rs 17,545 crore ($2.1 billion) and he featured on several prestigious ‘world’s richest’ lists. However, according to the recently released Forbes Billionaire Index 2024, Mr. Raveendran’s net worth has dropped to zero.
This sharp decline comes in the wake of multiple crises that have rocked the once high-flying startup, marking a significant fall from grace for the figurehead of the Indian startup ecosystem.
Noting Byju’s drop from the list, Forbes said: “This time around, only four people dropped from last year’s list, including former edtech star Byju Raveendran, whose firm Byju’s was engulfed in multiple crises and its valuation by BlackRock was reduced to $1 billion, a fraction of the peak of $22 billion in 2022.”
Founded in 2011, Byju’s quickly grew into India’s most valuable startup, reaching a peak valuation of $22 billion in 2022. Raveendran’s brainchild revolutionized the education sector with its innovative learning app, which targeted students from the primary school to MBA aspirants. However, recent financial revelations and mounting controversies have dealt a severe blow to the company’s fortunes.
The company’s problems were laid bare when Byju’s released its long-delayed results for the fiscal year ending March 2022, which showed a staggering net loss of more than $1 billion. This dismal financial performance led BlackRock, a major investor, to cut Byju’s valuation to just $1 billion, marking a steep decline from its peak valuation.
Byju Raveendran has faced intense criticism over the company’s declining fortunes. The company’s shareholders, including Prosus NV and Peak escalates.
Byju’s foreign investments are also under the scanner of the Enforcement Directorate. Before the lookout circular against the founder, the ED issued showcause notices to Byju’s parent company Think & Learn over alleged violations worth over Rs 9,362 crore under the Foreign Exchange Management Act.