‘The only mistake that created all this’: Byju Raveendran reflects on BYJU’S fall from $22 bn peak

Byju Raveendran, the founder of the troubled edtech company BYJU’S, has indicated that the company made errors in its business decisions by expanding too quickly to 21 countries. This rapid expansion was primarily driven by pressure from prominent investors.

The once high-valued edtech firm, worth $22 billion, has faced a substantial downturn due to financial challenges, regulatory hurdles, and legal disputes. The CEO of BYJU’S has also acknowledged a lapse in strategy, noting that the decision to secure a $1.2 billion term loan instead of utilising available equity options left the company vulnerable to external pressures.

“The only mistake, which created all this, is that we shouldn’t have taken this, when we had enough equity options, we shouldn’t have taken this term loan at that time in 2021. Rs 1 billion because we had other options. We have raised 5 billion before that. So it’s not, we were not doing it out of desperation. Now it was all a collective decision,” he said.

During an exclusive interview with news agency ANI, Raveendran said: “When we tried expanding from India to the whole world, we made some business mistakes. Maybe we could have taken it a little bit slowly. We were growing a little too soon, too fast. We went from India to 21 new countries. But if you ask me, in that context of 2019 to 2021, the COVID era. We have 160 investors, world-class investors, and equity investors…”

Byju’s also acknowledged that external macro factors, such as the Russia-Ukraine war, resulted in major investors reneging on promised investments. This development had a significant impact on the company’s expansion and acquisition strategies.

“We were raising money for growth at that time. But when the world changed when interest rates went up, when Fed increased the interest rate and, almost simultaneously, the big war started, Russia and Ukraine, suddenly the liquidity dried up. 700 million of committed capital; signed committed capital didn’t turn up,” he added.

The edtech platform was introduced in 2015, focusing on serving students ranging from kindergarten to class 12. By 2019, the company reached a valuation of over $1 billion, earning the coveted ‘Unicorn’ status. By 2022, the company’s valuation had soared to $22 billion.

Raveendran highlighted the impact BYJU’S has had on young professionals, emphasizing the assurance of fixed salaries for recent graduates. The founders of Byju’s have strongly rejected the allegations made in a lawsuit by GLAS, calling them ‘baseless’ and labeling it a conspiracy for control.

“It’s a lost opportunity for India. My idea was to create a million teaching jobs. Now you can say, Oh, that’s such a big ambition. We were just starting. We were at its peak as a tool. We created almost 40,000 teaching jobs. And then there was one more thing. Like what mistake we made when we created 2.15 lakh jobs for fresh graduates… Which is just for the greed of a few random vulture lenders in the US,” he said. 

Raveendran explained his determination to not abandon his creation, stating “Despite being broke, our spirit remains unbroken.” He confidently stated to ANI, “I am not giving up. We will regain control and make a strong comeback, in any manner or structure.”