BYJU'S went from India's most valuable startup to a founder ouster in two years

BYJU'S, the Bengaluru-based online tutoring company, became India's most valuable startup in 2022 when it raised more than $800 million at a $22 billion valuation from investors including Prosus, Peak XV, General Atlantic and the Chan Zuckerberg Initiative. The company spent heavily to maintain momentum: it sponsored the 2022 FIFA World Cup for a reported $40 million and acquired about nineteen companies for roughly $3.6 billion, including the test-prep firm Aakash Institute.

The expansion masked deepening problems. BYJU'S delayed publishing its audited accounts, reported widening losses, and faced complaints about aggressive sales tactics and product quality. By late 2023 the company was cash-starved and hunting for new funding. In February 2024 a group of major shareholders convened an emergency general meeting and voted to oust founder-CEO Byju Raveendran and reconstitute the board, citing governance, compliance and financial mismanagement. Raveendran rejected the vote as procedurally invalid.

The same month BYJU'S launched a rights issue that reset its valuation to about $25 million, a 99.9% fall from the 2022 peak. The company later entered insolvency proceedings in India and its US arm filed for bankruptcy. The collapse became a warning sign for global edtech investors about the risks of growth-at-all-costs expansion and weak governance.