Bengaluru, October 19: BYJU’s founder, Byju Raveendran, reportedly said that his edtech company’s net worth was once USD 22 billion and is now zero. The statement comes as the company has been struggling with its business and investors. The edtech firm was founded in 2011, and since then, it has gained massive success, achieving a net worth of billions. However, a report said that the founder overestimated its growth.
TechCrunch said in its report that Byju Raveendran said to a group of journalists that his startup once had a USD 22 billion valuation and now it had “zero”. The founder of BYJU’s further explained that his company adopted a path of aggressive expansion by acquiring over a two dozen startups in new markets. However, when the funding reportedly dried up in 2022, which put the edtech firm into trouble. Apple Pay Now Supports 3rd-Party Web Browsers and Computers, Expands Its Buy Now, Pay Later Services; Check Details.
The report said that BYJU was planning to go public in early 2022, with certain investment bankers helping the company achieve a USD 50 billion valuation. However, 100 of its investors urged the company to follow the path of aggressive expansion and reach out to over 40 markets. Byju Raveendran said that the same investors were “cold” when the global market tumbled as Russia invaded Ukraine.
The global crisis caused by this conflict brought the capital market downwards and caused many of BYJU’s investors to run away. Major investors included Prorus Ventures, Peak XV, and the Chan Zuckerberg Initiative. Because of this, it became impossible for the company to raise additional funds. TRAI Releases Consultation Paper To Create Regulatory Framework for Ground-Based Broadcasters.
BYJU’s had governance issues and later entered into insolvency proceedings. The founder, Byju Raveendran, said, “It’s worth zero. What valuation are you talking about?” BYJU’s was once considered one of the leading edtech companies in the Indian market. It made a name for itself for adopting a holistic educational approach, offering various ways to teach the students. However, due to the struggles, the company has suffered a lot, coming down to “zero”.
(The above story first appeared on Today News 24 on Oct 19, 2024 10:37 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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