Byju Raveendran, the co-founder and CEO of Byju’s, once hailed as a unicorn in India’s startup scene, is now facing a series of challenges. The company, which was valued at $22 billion, has seen its valuation plummet to $1 billion amid allegations of mismanagement and financial troubles.
Shareholders recently voted to remove Raveendran as CEO, leading to a legal battle over the validity of the decision. Byju’s has also faced mounting debt, investor dissatisfaction, lawsuits, layoffs, delayed salaries, and a liquidity crisis.
The company’s troubles extend to accusations of pressure selling and financial irregularities. Byju’s has struggled to access funds, leading to delayed salaries for employees. Despite its initial success as an online tutoring firm, Byju’s expansion efforts have been marred by financial and legal woes.
The company’s current standoff with investors revolves around a proposed rights issue to raise funds. However, the decline in valuation has raised concerns about stake dilution for non-participating investors.
As Byju’s navigates these challenges, experts emphasize the importance of stable outcomes for both the company and India’s startup ecosystem. The ongoing crisis has drawn attention to corporate governance issues and the need for sustainable business practices in the startup sector.
