New Delhi:There was a time when Byju’s symbolised the rise of India’s startup economy. Backed by global investors, promoted through massive advertising campaigns, and featured on the jersey of the Indian cricket team, the company grew into one of the world’s most valuable edtech firms during the pandemic era.
Founded in 2011 as Think & Learn Pvt Ltd by Byju Raveendran, the company capitalised on India’s growing online education market and rapidly expanding smartphone usage. The Covid 19 pandemic accelerated its growth further as schools shifted to virtual learning. At its peak in 2022, Byju’s was valued at nearly 22 billion dollars.
The company expanded aggressively through major acquisitions including Aakash Educational Services, Great Learning, and Epic, reportedly spending close to 3 billion dollars to strengthen its global presence. However, beneath the rapid expansion, financial and governance concerns were beginning to surface.
The turning point came after Byju’s raised a 1.2 billion dollar term loan from overseas lenders in 2021. While initially viewed as a landmark achievement for Indian startups, the loan later became central to the company’s troubles. Delayed financial filings, mounting losses, and questions around revenue reporting began to erode investor confidence.
The situation worsened after auditors resigned, citing communication delays and concerns related to financial statements. Lenders later accused the company of moving hundreds of millions of dollars without proper disclosure, triggering legal disputes in the United States and Singapore.
Singapore courts recently sentenced Raveendran to six months in jail for contempt after he allegedly failed to comply with court orders linked to asset disclosures. At the same time, insolvency proceedings against Think & Learn were initiated in India over unpaid dues to the Board of Control for Cricket in India.
One of the most contentious battles now centres on Aakash Educational Services, considered Byju’s most valuable acquisition. The company risks losing significant control in Aakash as financial restructuring and rights issue disputes continue.
Meanwhile, layoffs, salary delays, board resignations, and collapsing investor confidence have severely damaged the company’s reputation. Once valued at 22 billion dollars, Byju’s has reportedly been marked down by some investors to near 1 billion dollars or less.
The fall of Byju’s is now widely seen as a cautionary tale about aggressive expansion, debt driven growth, and weak corporate governance within India’s startup ecosystem.
