SOURCE : NEW18 NEWS
Last Updated:May 18, 2025, 15:49 IST
By 2019, the company had achieved ‘Unicorn’ status with a valuation of over $1 billion. By 2022, the company’s valuation soared to $22 billion before plummeting to nil.
Raveendran’s Byju has been battling lawsuits in India and the US. (Photo Credits: Instagram)
Byju’s founder Byju Raveendran has acknowledged that a significant mistake the company made was opting for a $1.2 billion term loan in 2021, despite having adequate equity funding options. He also noted that the company expanded too fast in over 21 countries, driven by the pressure from investors.
In an interview with ANI, Raveendran explained that the decision, made collectively with board members including investor and founder directors, was not a result of desperation, as the company had previously raised $5 billion.
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Reflecting on the decision, he admitted that other options were available and the loan ultimately contributed to Byju’s financial difficulties.
“Looking back, the mistake that caused all this was taking the term loan in 2021, especially when we had sufficient equity options. We had raised $5 billion before that and weren’t acting out of desperation. It was a collective decision with our board, comprising three founder directors and three investor directors, who were with us until 2020,” Raveendran said to ANI.
He also mentioned, “These are business mistakes. Today, even though it came through an acquisition, the concept of WhiteHat Jr. could have significantly impacted by enabling Indian teachers to teach students worldwide. That was a huge opportunity lost.”
The Bengaluru-based edtech company is currently facing financial problems, regulatory issues, and legal battles.
Introduced in 2015, the edtech platform focused on students from kindergarten to class 12th.
By 2019, the company had achieved ‘Unicorn’ status with a valuation of over $1 billion. By 2022, the company’s valuation soared to $22 billion before plummeting to nil.
Raveendran emphasized the positive impact BYJU’S has had on young professionals, ensuring fixed salaries for recent graduates. The founders have strongly refuted the allegations in a lawsuit by GLAS, calling them ‘baseless’ and a conspiracy for control.
(With ANI Inputs)
- First Published:
May 18, 2025, 15:49 IST
