Byju's founder admits overestimating growth, says company's valuation is "worth zero"

Byju's founder admits overestimating growth, says company's valuation is "worth zero"

Byju Raveendran acknowledges missteps in expanding Byju's too quickly, leading to financial woes and insolvency claims. Despite the challenges, he remains optimistic about finding a way to rescue the company

Byju Raveendran, the founder of what was once India’s largest start-up, Byju's, has acknowledged overestimating the growth potential of his education-technology firm, which is now facing insolvency. During a media interaction on Thursday, Raveendran admitted that the company, once valued at $22 billion in 2022, is now "worth zero" as it struggles with financial difficulties and mounting allegations of mismanagement.

Byju's gained popularity during the COVID-19 pandemic by offering online education in over 21 countries, but recent months have been turbulent for the company. It faces demands from US lenders over unpaid dues and accusations of misusing $1 billion in borrowed funds—claims that Raveendran has denied. "The company is worth zero. What valuation are you talking about? It is zero," Raveendran stated during the interaction, adding that the company expanded into too many markets too quickly, which contributed to its downfall.

Byju's has been embroiled in legal disputes after US-based lenders brought their grievances to India's Supreme Court in August, accusing the company of misusing funds. Glas Trust, representing these lenders, has not commented on the situation, while the Supreme Court is yet to issue a ruling. The company's rapid rise and subsequent troubles have included boardroom resignations, delayed financial disclosures, and public conflicts with investors. Despite these challenges, Raveendran remains hopeful, stating, "Whatever is coming, I will find a way out."

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