Byju’s, the biggest name in the field of Indian education technology, is going through a financial crisis today. There was a time when this company claimed to bring a revolution in the lives of crores of students through education. Byju’s app had made a mark not only in India but all over the world, but today this company is on the verge of bankruptcy and its value has become zero.
During a press conference, Ravindranath Byju said that we have not committed any fraud regarding the company. If this had happened, the founders would have been the first to withdraw money from the company. But we did not do this, rather we invested more money. But now BYJU’s is badly ruined.
BYJU’s is currently experiencing its worst phase as the country’s largest edtech platform. The situation has come to such a pass that the founder of the company has to mortgage his house to pay the salaries of the people. In terms of advertising and marketing, the company spent a lot of money. Stars like Shahrukh Khan and Mohanlal started appearing in its ads.
According to Ravindran Byju, the term loan of $1.2 billion from US lenders proved to be dangerous. After the deal with BCCI, there was a dispute with these lenders and they asked to repay the loan and interest. After this, the investors also separated from the company. From here the condition of the company kept deteriorating and within three years the company was completely ruined.
Byju said that if the investors had voted for change or restructuring instead of resigning, then the company would not have been in this condition today. The company, whose valuation was $22 billion in 2022, is standing at zero today. The company has taken more debt than its bank balance and assets.
This company, started by Byju Ravindran in 2011, became a pioneer in the field of online education platforms. The Byju app gave a completely new look to the preparation of mathematics, science, and competitive examinations for students. Animated videos, engaging quizzes, and interactive courses made it very popular among students and parents.
