Byju's CEO Raveendran defends startup strain, says "toxic work culture can cause PTSD, but it can also lead to post-traumatic growth"

Economic Times

18-05-2025

ANI "I'll never sell anything which I won't give to my son": BYJU'S founder Raveendran
Toxic work culture can cause PTSD, but for those who are mission-driven, it can also lead to 'post-traumatic growth,' said Byju Raveendran, founder and CEO of edtech firm BYJU'S. In his first extended public remarks since the company entered crisis, Raveendran defended his role, rejected accusations of wrongdoing, and introduced 'Byju's 3.0'—a vision that returns focus to teachers and students.Speaking to ANI, Raveendran explained why he refused to walk away when the company was on the brink. 'A good teacher will never leave students halfway,' he said. 'The teacher in me stood up, and we didn't shut down the businesses. We had to complete the course.' Despite a storm of legal and financial troubles, he said the team kept operations alive because of a shared commitment to education.
Once valued at $22 billion, Byju's is now mired in lawsuits and cash flow challenges. The most serious charge is a $533 million fund transfer linked to its US financing arm, Byju's Alpha. Raveendran, along with his wife Divya Gokulnath and former executive Anita Kishore, is accused of diverting the loan amount. Raveendran dismissed the allegations, saying, 'They are clearly telling there is no fraud, but they are trying to make it look like there is... The goal is to create a narrative that suits their interests.'
He alleged that Glas Trust, the lender's trustee, is part of a wider campaign to discredit him and the company. 'These are narratives that they have created in trying to take control of the company,' he said. 'Unfortunately, in a company that is built on the founder's name... if you tarnish the founder's name, it'll have a huge impact on the company's valuation.' Clarifying the nature of the Enforcement Directorate's (ED) inquiry, Raveendran stressed that there is no case against him personally. 'It was on the Think & Learn transactions... there was never a PMLA. There was never a chargesheet. There were summons, I went and met, we cooperated. Investigation is closed,' he told ANI.
He also addressed reports about a lookout circular, saying, 'If ED puts out a lookout notice, they will never make that public because that defeats the purpose... it was never personal.'Raveendran claimed that a handful of US-based hedge funds and lenders exploited the situation. 'I'm not blaming all our investors. But there are a few rotten apples... a couple of US-based lenders. They've made more money than anyone could have imagined from Byju's,' he said.He referred to them as 'vulture lenders' and accused them of derailing his long-term goal of creating a million teaching jobs in India. 'It's not a conspiracy by many. It's literally two hedge funds—some Americans and a few Indians based in the US,' he said.Byju's faced a major liquidity crunch after failing to secure $700 million in committed funding. Raveendran attributed the shortfall to global economic shocks but acknowledged some internal errors too.Reflecting on a key decision, he said, 'That was the only mistake. We shouldn't have taken that term loan when we had enough equity options.' The company had already raised $5 billion before taking the $1 billion loan in 2021. 'It wasn't out of desperation. It was a collective decision—but in hindsight, we shouldn't have taken that loan,' he admitted.Raveendran rejected the idea that he had benefited personally from the company's rise. 'I never saw the money come. I never saw it go. We invested everything we had in one mission—Byju's,' he said. 'We have no other investments. My entire investment is in Byju's.'His wife, Divya Gokulnath, echoed this sentiment. 'If I have a circle of 10 people, Byju has a circle of 5. We don't go out, we don't party, we don't network. For us, it's always been about the company and our family,' she said. 'We don't own any luxury cars. We don't own any luxury homes… It's always been about what we can do for our country.'Byju's expanded rapidly during the pandemic, riding a wave of investor enthusiasm. But that pace may have come at a cost. 'When we tried expanding from India to the whole world, we made some business mistakes. Maybe we could have taken it a little bit slowly,' Raveendran said. He added that investor pressure was a key factor. 'We have 160 world-class investors. All of them—this was the mandate: grow, grow, grow and change the way kids learn.'Now, he hopes to rebuild from a more grounded place. 'Why shouldn't I fight to protect what I've built over the last 20 years, what we've built together with 85,000 employees?' he asked. 'When we make a comeback, it will be on the same mission—but we will be more flexible in how we operate. We've learned a lot of lessons along the way.'Looking ahead, Raveendran said Byju's 3.0 will focus on simplifying and enriching learning with the help of technology. 'How do we make it easy and interesting for students? How can we use AI not to replace teachers but to enable teachers to become better teachers?' he asked.The founder closed with a reminder of where the company began: in a classroom. 'We don't belong in courtrooms, we belong in classrooms. That's where we belong,' he said. 'And these classrooms, being based out of India, are our biggest advantage.'