Latest news with #ByjuRaveendran
India.com
7 days ago
- Business
- India.com
From Rs 1880000000000 to Rs 0: A teacher who became a billionaire, one wrong decision made him bankrupt, his name is...
New Delhi: No one ever thought that the coaching institute for which Bollywood actor Shah Rukh Khan would advertise on TV for admissions would reach such a state. The situation got so dire that Google Play Store delisted them from their platform. This means you will no longer see this app on Google Play Store. The company that touched a valuation of 22 billion dollars, around Rs 1.88 lakh crore rupees in 2022, saw such a change in circumstances in the next two years that it reached zero. Today's story is about Byju Raveendran's fall from grace. When the TV was turned on or a page of the newspaper was flipped, there was a time when Byju's advertisements were everywhere. The company was sponsoring Team India's jersey and tournaments like IPL, but a mistake turned them from hero to zero. The company's wealth plummeted to zero in two years. The company took on more debt than it needed. They didn't have enough money to pay their employees' salaries. The situation became so critical that they had to mortgage their homes. Byju Raveendran was born in 1980 in a simple family in Kerala. His mother was a math teacher and his father a physics teacher. Byju was outstanding in studies since childhood. After completing his B. Tech, he took a job at a shipping company. When he came home during the holidays, his friends who were preparing for CAT asked him for help. Since Byju had scored 100 percent in CAT, he began to prepare his friends for the exam. Their results improved, so he left the job and started teaching. Byju's started coaching classes at home. They used to hold tuition classes in their room. Soon, their popularity began to grow. As the room became too small for teaching, they started teaching in a stadium. In 2007, they launched Byju's Classes. During this time, he fell in love with one of his students, and they got married. Together with his wife Divya Gokulnath, they started an edtech company and launched Think and Learn Private Limited. Byju's soon began offline classes. In 2013, Ranjan Pai, chairman of the Manipal Group, and Mohandas Pai, CFO of Infosys, invested in Byju's. In 2015, the company launched its app. In 2016, the company received an investment of Rs 1200 crores. In 2017, it received an investment of Rs 600 crores. In 2018, the company's valuation reached 1 billion dollars, making it the first edtech company in the country to join the unicorn club. In 2020, during the COVID pandemic, the company's growth accelerated. From 2017 to 2021, Byju's acquired 17 companies. Byju's has spent money on its advertisements like water. Celebrities like Shahrukh Khan and Sourav Ganguly have been seen endorsing it. The company secured the main sponsorship for the IPL. An advertising deal was signed for the jersey with the BCCI. In 2022, it sponsored the FIFA World Cup. The company made a deal worth crores with Lionel Messi. In its pursuit of speed, the company made several mistakes, and its downfall began. The company acquired WhiteHat Jr for 300 million dollars, which proved to be a loss-making deal. It continued to fall short of meeting its targets. The company's losses reached up to 456.4 billion rupees. The burden of debt was increasing on the company, and with schools and colleges reopening after COVID, the losses faced by Byju's also accelerated. The number of students in online classes decreased, along with the company's profits. The company did not file its financial results for 2021-22 for a year, due to which members of the China board and auditors distanced themselves from it. In 2023, tech investor Prosus reduced the funding for Byju's, resulting in significant losses for the company and necessitating major layoffs. Despite the losses, the company spent money on marketing like water. Parents and students began to question the quality of Byju's courses. Investors started to leave. By 2023, the company made it clear that its valuation had fallen to zero. The valuation of Byju, which was $22 billion in 2022, now stands at zero. To pay salaries, Byju Raveendran had to mortgage his own house. Wrong decisions and acquisitions without proper assessment weighed heavily on Byju. Overall, mismanagement has sunk Byju. By 2023, the situation worsened, and the ED began investigating the violation of FEMA. American creditors demanded bankruptcy. Employees started to leave. By 2024, Byju's valuation had dropped to zero. The company reached the brink of bankruptcy due to legal battles, a mountain of debt, and mismanagement.
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Business Standard
22-05-2025
- Business
- Business Standard
Aakash accuses EY of conflict of interest, seeks Byju's-linked records
Aakash Educational Services Ltd (AESL) has accused EY of conflict of interest and professional misconduct in the context of its ongoing legal dispute involving Byju's. The dispute primarily concerns governance and control issues at AESL following the failed acquisition by Byju's. In a strongly worded letter dated 17 May 2025, AESL's legal team alleged that EY acted in a dual capacity, offering advisory services to both AESL and Byju's, despite being fully aware of their intertwined relationship. AESL described EY's conduct as 'unethical and legally untenable' and demanded that the firm cease all involvement and preserve all communication records for potential legal proceedings. Manipal Group also raises red flags CrestLaw Partners, representing the Manipal Group—a significant stakeholder in AESL—also questioned EY's role in advising the group on matters involving tax, regulatory compliance, and accounting. In a letter dated 21 May, CrestLaw wrote: 'We would further like to point out that, as majority shareholder in AESL, our client has been apprised that there are considerable correspondences in the records of AESL, which show that EY was a constant factor, in both operations and advice rendered to Mr Byju Raveendran /Byju's/AESL/Aakash Choudhry/Blackstone/our clients, the Manipal Group.' It added: 'Your association in any manner, through anyone, in the Corporate Insolvency Resolution Process (CIRP) is a matter of considerable concern, regret and amounts to misconduct.' EY denies allegations In response, EY told PTI: 'We refute all allegations. We treat matters of client confidentiality and conflict with utmost seriousness. Therefore, we cannot comment further on this matter.' Legal warning from AESL AESL's legal head Sanjay Garg stressed the significance of the issue: 'We have sufficient material in our possession to submit before any adjudicating/regulatory authority to suggest that any involvement in the CIRP process would conflict with independent professional functions to be performed by entities such as you.'
Time of India
22-05-2025
- Business
- Time of India
Aakash warns EY over conflict of interest in Byju's-AESL row
Live Events Aakash Educational Services (AESL) has accused EY of conflict of interest and breach of professional conduct in its ongoing dispute involving Byju's . It has also asked EY to disclose all documents, information, or communication it was privy to, in relation to transactions involving broader legal fight centres around the governance and control of AESL following the failed acquisition by Byju's -- which has been reeling under charges of mismanagement, and alleged misuse of company CrestLaw Partners , acting on behalf of Manipal Group (which holds significant stake in AESL), also approached EY flagging the firm's involvement in advising the Manipal Group in material matters involving tax and regulatory implications , accounting treatment among others, pertaining to AESL."We would further like to point out that, as majority shareholder in AESL, our client has been apprised that there are considerable correspondences in the records of AESL, which show that EY was a constant factor, in both operations and advise rendered to Mr. Byju Raveendran/Byju's/AESL/Aakash Choudhry/Blackstone/our clients, the Manipal group," it said on May added, "Your association in any manner, through anyone, in the Corporate Insolvency Resolution Process , is a matter of considerable concern, regret and amounts to misconduct," CrestLaw Partners further reached for comments, EY said in a statement, "We refute all allegations. We treat matters of client confidentiality and conflict with utmost seriousness. Therefore, we cannot comment further on this matter".Meanwhile, sources privy to the development said AESL's legal team -- in a strongly worded letter on May 17, 2025 -- accused EY of acting in a dual capacity, advising both Byju's and AESL, despite being fully aware of the hostile and litigated nature of their has termed this "unethical and legally untenable" and has moved to protect the integrity of ongoing legal to charges levelled by AESL, EY allegedly provided services to Byju's while also interacting with AESL, something it labelled as a clear conflict in a case involving corporate control and shareholder disputes in despite being put on notice, EY continued to allegedly act in disregard of fiduciary boundaries, triggering legal response, AESL has demanded EY cease all involvement and preserve all communication records for potential use in legal the letter to EY, AESL's legal head, Sanjay Garg made it clear that institutional integrity cannot be compromised, especially when it comes to firm's entrusted with sensitive, high-stakes advisory roles."We have sufficient material in our possession to submit before any adjudicating/regulatory authority to suggest that any involvement in the CIRP process would conflict with independent professional functions to be performed by entities such as you," said the communication has put EY on notice that on their failure to confirm and provide the requisite information, appropriate steps in law would be taken against them, sources added."We would be constrained to take appropriate steps if you do not appreciate the seriousness of the point made by us that EY was an advisor as well as participant in many of the decisions," AESL said in the letter to EY.
News18
19-05-2025
- Business
- News18
‘We Belong In Classrooms': Byju's Founder Targets ‘Original Mission' Amid Legal Troubles
Last Updated: Byju Raveendran opened up about his edtech company's changing dynamics, legal troubles and comeback. After months of legal troubles and financial setbacks, Byju Raveendran is charting a comeback plan for his embattled edtech firm. The Byju's founder and CEO, who once helmed India's most valued startup, said he is ready to take the company 'back to where it all began" — the classroom. Raveendran also addressed the ongoing lawsuits and reflected on the missteps that led to the company's dramatic fall. In a conversation with ANI, Byju Raveendran introduced Byju's 3.0, stating, 'I am so excited to talk to you about it because we both don't belong in courtrooms. We belong in classrooms. That's where we belong. And these classrooms, being based in India, are our biggest advantage. It's a country where there is so much respect for teachers, so much respect for learning." Noting that the company was never about personal gains, he shared that there was only one mission and everything was invested in one place, and thus, he wouldn't be giving up so easily. 'The reason why we are not giving up on BYJU'S is because we owe it to the students, teachers, and employees who trusted us. That's why we're not giving up. BYJU'S 3.0 will stay true to our original mission," he continued. While Raveendran refrained from revealing further details about Byju's 3.0, he teased that the new model could adapt AI learning to enhance teachers and help underperforming students. 'I am not in a position to disclose what that will be. I can assure you that it will again be built on the same mission, which is to create a love for learning for students. Everything that we'll do will create an impact at a scale that we've not been able to do before," he said. Following its rapid expansion during the COVID-19 pandemic, Byju's started facing issues with cash flow, and eventually got into a dispute with creditors over a $1.2 billion term loan in 2021. First Published: May 19, 2025, 09:08 IST
Mint
19-05-2025
- Business
- Mint
Byju's co-founder Divya Gokulnath says personal attacks ‘unfair', adds: ‘If we were sitting on millions of dollars…'
Divya Gokulnath, Byju's co-founder and wife of the unicorn's disgraced founder-CEO Byju Raveendran, has refuted allegations that the couple diverted loans to personal accounts, claiming they do not have funds to even hire legal representation in the United States. 'If we truly had hundreds of millions of dollars, we would have had no trouble affording legal representation', Divya Gokulnath claimed in an interview with news agency ANI. Divya Gokulnath told the agency that lawyers are demanding 'millions of dollars' in fees to represent them in US courts. She stated, 'Today, in the US, judgements are passed back to back to us by one court. Because we don't have representation.' 'I'll show you emails where they say, give us a million dollars. Lawyers are saying, Give us a million dollars or we won't represent. Where do I get the million dollars from? If we were sitting on 533 million dollars, this would not be the situation, right? We would have been fighting in the courts. We would have thrown money at lawyers,' she added. Notably, BYJU'S is fighting legal battles over unpaid debts across courts in the US and India. She further called 'personal attacks' on her and Byju Raveendran 'unfair'. 'Honestly, I don't care about the money. It comes, it goes. And Lakshmi can come and go. Saraswati is with us. Goddess Saraswati is always with us. For me, it's about the tarnishing which has happened, which I feel is so unfair,' she said. Gokulnath added, 'It was all about what we could do for our country. And not what the country can do for us. So we are a made in India, made by Indians, proudly made for the world's product, service, company, people, students-first company.' She added that while many entrepreneurs move abroad to pursue their ventures, the couple's vision was to build BYJU'S as a homegrown "Make in India" success story. 'At the time when people were going abroad and setting up their companies because that was much more lucrative, we resisted it. We said, no, this has to be a make in India story. We will make our products in India. We will give our services from India and we will be an example for the world in education. Because education belongs to India,' Gokulnath said. Divya Gokulnath also alleged that a targeted campaign of intimidation and pressure tactics was mounted aimed at isolating her husband, Byju Raveendran, by threatening those close to him, including family members, colleagues, and even legal counsel. Referring to incidents where unknown individuals reportedly visited the homes of management personnel, Byju Raveendran, the founder and the CEO of BYJU's, expressed concern, stating, "People get scared when somebody walks in, intrudes into a home in the context of not having answers." Despite all these troubles, Gokulnath asserted that it is the truth and the final mission that bind all of them together. "I think indirectly that's what they're trying to say. They're saying stand-off, or maybe create a lot of reputational damage so that you say, okay, you know what, I'll stay out of this. It's not going to happen because there is something, there is truth that binds all of us together. There is the final mission that binds all of us together," she asserted.
