The founder of India’s top online education provider is facing criticism from investors after weeks of turmoil within the company. Byju’s, once valued at $22 billion, saw its auditor and three board directors resign in June, prompting a crisis call with investors. Byju Raveendran, the founder, acknowledged mistakes but emphasized that Byju’s was not just his work but his life. However, the journey of Byju’s has been filled with ups and downs. The company flourished during the pandemic, securing $2.5 billion in investment, acquiring 20 companies, and amassing 150 million students. But as the pandemic waned and interest rates rose, the flow of easy money dried up, causing financial strain. The company also faced negative publicity, including allegations of a toxic work culture and mis-selling its products. Byju’s denied the allegations and said the job cuts were due to overlapping roles after acquisitions. Despite these challenges, industry experts believe that Byju’s will survive. However, its valuation has significantly decreased, and its backers, including Naspers and BlackRock, have reduced their assessments of their stakes. Raveendran still holds a significant equity stake and plans a flotation next year for Aakash, an exam coaching institute acquired for $1 billion in 2021. Overall, this situation highlights the importance of effective financial reporting and investor oversight in companies like Byju’s.
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