The founder of the edtech company Byju’s, Byju Raveendran, has stated that failures will not determine the company’s destiny. He further noted that he pledges to revive his once-thriving business. “Broken, but not broken.” Along with an old photo of himself, Raveendran wrote on X, “We will rise again.” Due to financial crises, regulatory obstacles, and legal disputes with investors, the firm has seen a significant collapse. During its peak time, the firm was valued at an astounding $22 billion in 2022. But later BYJU’S started to falter due to investor disputes, growing debt, and a financial collapse. Byju Raveendran had been out of India since late 2023. Raveendran, who started working at X in March, talked about the company’s 20-year history. Nothing is ever as nice or horrible as they lead you to believe, the founder wrote. Usually, the reality is somewhere in the middle. He added that he is on the social media site to discuss the past 20 years, including the good 17, the bad 2, and the ugly 1. No filtering. Just the facts.
Recalling the Joyful Contributions
He further talked about Byju’s influence on the development of young professionals. He pointed out that over the course of nine years, the company had engaged 2,15,000 recent graduates. While speaking about the remuneration part, he further noted that the firm had paid them a minimum set wage of INR 6 lakh. He said that these 2 lakh new hires with no prior experience, extraordinary talent, and boundless drive created Byju’s. “They later become valuable contributors to our economy. Some started their own businesses and produced jobs. That first rare opportunity was all they needed,” he mentioned on X. “Once we relaunch our company — which I believe will happen sooner than expected — we will rehire exclusively from our incredible pool of former BYJUites,” Byju stated earlier in a post on X. Some people might think I’m insane for being so optimistic. On March 29, he wrote, “But remember, you have to be odd to be number one.”
From where the Trouble Started?
For school children, Byju’s provides online tutorials in areas like maths, physics, and chemistry. During the COVID-19 pandemic, when schools were forced to close, Byju’s business operations took off. The return of in-person classes started to hurt its fortunes, and the company’s earnings were insufficient to support its aggressive acquisitions and quick growth. The Board of Control for Cricket in India (BCCI) requested in 2023 that a tribunal begin insolvency proceedings against Byju’s. This step was taken as the firm failed to pay $19 million in unpaid debts related to sponsorship rights for the Indian cricket team’s uniforms. Byju’s and the Indian Cricket Board reached a settlement whereby the company agreed to pay the full amount, and the proceedings were quashed. As a result of the lawsuit, US lenders, who were represented by Glas Trust, petitioned the Supreme Court. The investors claimed that Byju had paid BCCI with money that was owed to them. Despite the company’s denial of mismanagement charges, the Supreme Court ordered Byju’s to go into insolvency and postponed the tribunal’s ruling.
