Byju Raveendran’s Net Worth Plummets to Zero Amid Ongoing Crisis

• ByStartupStory     |    April 4, 2024

Byju Raveendran, the once high-flying edtech entrepreneur, has seen his net worth plummet from a staggering ₹17,545 crore ($2.1 billion) a year ago to zero, according to the latest Forbes Billionaire Index 2024. This drastic downfall marks a significant setback for the poster child of India’s startup ecosystem and underscores the challenges faced by his company, Byju’s, amidst ongoing crises.

Forbes noted Byju’s dramatic fall from the billionaire list, attributing it to a series of crises engulfing the edtech firm. Most notably, BlackRock marked down Byju’s valuation to $1 billion, a fraction of its peak valuation of $22 billion in 2022. This markdown reflects the tumultuous journey Byju’s has undergone in recent times.

At the heart of the turmoil lies a bitter battle between Byju’s and dissenting investors over the company’s rights issue of $200 million. Four major investors – Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia) – have raised concerns over the rights issue, alleging oppression and mismanagement. They fear that the proposed rights issue, priced at less than 99 per cent of Byju’s peak enterprise valuation, would erode the value of their investments.

Byju’s, once hailed as a pioneer in the edtech space, now finds itself grappling with financial constraints and investor discontent. The company’s woes have captured widespread attention, serving as a cautionary tale for India’s burgeoning startup ecosystem.

Meanwhile, India’s billionaire landscape continues to evolve, with stalwarts like Mukesh Ambani, Gautam Adani, and Shiva Nadar dominating the Forbes World’s Billionaires List 2024. Mukesh Ambani leads the pack with a net worth of $116 billion, followed by Gautam Adani with $84 billion and Shiva Nadar with $36.9 billion.

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