BENGALURU: From $2.1 billion net worth a year ago, edtech firm founder Byju Raveendran’s net worth has now plummeted to zero, according to the Forbes Billionaire Index 2024 list.
Byju’s was once known as the most valuable start-up, but now the edtech firm has been witnessing a series of setbacks including multiple legal battles, and even struggles to pay its employees’ salaries. In December 2023, Raveendran pledged his home to pay salaries.
“Only four people from last year’s list dropped off this time, including former edtech star Byju Raveendran, whose firm Byju’s was enveloped in multiple crises and its valuation was marked down by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022,” Forbes said.
Raveendran has been facing severe criticism as the company’s fortunes have been declining. Prominent investors recently voted to oust him as CEO. Prosus, one of the shareholders, in a statement had said that in its EGM shareholders unanimously passed all resolutions put forward for vote. These included a request for the resolution of the outstanding governance, financial mismanagement and compliance issues at Byju’s; the reconstitution of the Board of Directors, so that it is no longer controlled by the founders of T&L; and a change in leadership of the company.
Since January, the edtech firm has been struggling to pay salaries. Raveendran in an emotional letter to employees recently said that he has been moving mountains for months to make payroll.
Meanwhile, Byju’s on April 4 filed an application with the National Company Law Tribunal (NCLT) to refer its dispute with the investors for arbitration.
Recently, before conducting the EGM, Raveendran in an email to shareholders said the last two years were tough, but that “our comeback will be stronger than our setback.”
Though the company closed the rights issue last month, right now it is locked in a separate account.