CORPORATE
Byju’s worth zero today, says Raveendran; blames investors for abandoning startup
- IBJ Bureau
- Oct 18, 2024
Byju Raveendran, the founder of Byju’s, has blamed his investors for the edtech icon’s meltdown and throwing him under the bus. Mr Raveendran has asserted that the investors had aggressively backed him during its era of expansion and acquisitions, but “run away” at the first sign of trouble.
Mr Raveendran, who spoke to media for the first time since all the financial troubles began, has expressed regret over investors ditching the startup in the face of ongoing challenges.
“Investors were asking for that (a change in management) without a plan,” Mr Raveendran told journalists from his residence in Dubai. “Since the markets turned in December 2021, the only people who have been putting money in the company is (sic) us,” he added, insisting that he was still the best hope for the startup.
Mr Raveendran pointed out that “some investors — including Prosus — have not invested anything in 4-5 years”.
During a virtual press conference, while sounding optimistic of a turnaround, he said that Byju’s worth today was zero.
Prosus has written off its investment in the once-the-most-valued Indian startup.
“When the US lenders called a default and filed in the Delaware court, within two weeks, all three directors resigned. Those three board members resigning together... is what made it almost impossible for us to do any more fundraising or equity-raising. Even if they wanted to resign, if a transition or a vote for reconstitution had been planned, the company wouldn’t be in the situation it is today,” Mr Raveendran said.
Report By
View Reporter News