Edtech

Byju Failed Because He Didn’t Listen to Anyone: Unacademy CEO Gaurav Munjal

• ByStartupStory     |    June 29, 2024

Gaurav Munjal, CEO of Unacademy, has highlighted the downfall of Byju’s, attributing its struggles to the leadership style of its founder, Byju Raveendran. Munjal emphasized the importance of accepting and acting on feedback, pointing out Raveendran’s failure to do so as a critical factor in Byju’s decline.

“Byju failed because he didn’t listen to anyone. He put himself on a pedestal and stopped listening. Don’t do that. Never do that. Don’t listen to everyone but have people who can give you blunt feedback,” Munjal wrote in a post on X.

Reflecting on his own experiences, Munjal underscored the significance of receiving straightforward feedback. “You might not always like the feedback, but take the feedback and act on it,” he added. Munjal’s comments come at a time when Byju’s, once a shining star in the ed-tech sector, is embroiled in multiple challenges.

The Ministry of Corporate Affairs announced on Wednesday that proceedings against Byju’s under the Companies Law are “still ongoing,” cautioning that no conclusions can be drawn at this stage. The ministry had ordered an inspection of Byju’s financial records last year due to concerns over its inability to finalize statements and the resignation of an auditor.

In a further blow to the company’s valuation, investment firm Prosus has written off its 9.6 percent stake in Byju’s, marking one of the largest write-offs in tech startup investments. Prosus recorded a fair value loss of $493 million on its investment in Byju’s, as detailed in its FY24 annual report released on June 24.

Adding to the turmoil, Byju’s and its investors are currently engaged in a legal battle at the National Company Law Tribunal over a rights issue of $200 million, with allegations of mismanagement being central to the dispute.

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