Key Points
- Byju Raveendran admits mistakes led to Byju’s current valuation of “zero.”
- The company aggressively acquired startups but couldn’t sustain growth.
- Key investors withdrew support amid market instability.
- Byju’s has entered insolvency proceedings.
- Raveendran remains hopeful for a future recovery.
Looma News
Byju Raveendran, founder of Byju’s, is dealing with a tough reality check. The edtech startup, which once boasted a whopping $22 billion valuation, is now said to be worth “zero”.
The Rise and Fall
So what went wrong? Raveendran admitted he may have gone too hard and fast, trying to expand into new markets by acquiring over two dozen startups. It seemed smart until funding dried up in 2022, thanks to global issues like the Ukraine war.
Investor Woes
He pointed out that investors were all about aggressive growth and even pushed him to target 40 markets. But when the market crashed, those same investors vanished. Losing key backers like Prosus Ventures and the Chan Zuckerberg Initiative made it nearly impossible to find new funding.
Current Status
Now, Byju is facing insolvency proceedings, and with Raveendran stepping back, the outlook is pretty grim. Still, he’s not giving up. After putting his life savings into the company, Raveendran remains hopeful for a comeback, saying, “I have nothing to lose.” It’s a rough situation, but his determination is evident.
