Byju Raveendran's Net Worth Was ₹ 17,545 Crore A Year Ago. Today It Is Down to 0

New Delhi: Byju Raveendran, once hailed as a titan in the world of edtech and a fixture on prestigious 'globe's richest' lists, has seen a dramatic reversal of fortune. Just a year ago, his net worth stood at a staggering ₹17,545 crore ($2.1 billion). However, according to the recently released Forbes Billionaire Index 2024, Raveendran's net worth has plummeted to zero.

The reason behind the abrupt downfall?

This abrupt downfall comes amidst a series of crises that have besieged his once-thriving startup, Byju's. Once touted as the poster child of India's startup ecosystem, Byju's has experienced a remarkable fall from grace.

Forbes noted Raveendran's fall from the list, highlighting that only four individuals from the previous year's list dropped off this time, with Raveendran being one of them. 

The decline in his fortunes can be attributed to a multitude of challenges that have plagued Byju's, leading to a significant devaluation of the company.

Founded in 2011, Byju's quickly rose to prominence, becoming India's most valuable startup with a peak valuation of $22 billion in 2022. 

The company revolutionized the education sector with its innovative learning app, catering to students from primary school to MBA aspirants. However, recent financial disclosures and mounting controversies have tarnished its once sterling reputation.

Byju's financial troubles came to light when it reported a staggering net loss exceeding $1 billion for the fiscal year ending March 2022. This dismal performance prompted major investor BlackRock to slash the company's valuation to a mere $1 billion, a fraction of its peak valuation.

Raveendran has faced intense scrutiny and criticism for Byju's declining fortunes. Shareholders, including Prosus NV and Peak XV Partners, recently voted to remove him as CEO, escalating a power struggle over the fate of the embattled startup.

Moreover, Byju's foreign investments have come under the scrutiny of the Enforcement Directorate. Following a lookout circular against Raveendran, the ED issued showcause notices to Byju's parent firm Think & Learn over alleged violations worth over ₹9,362 crore under the Foreign Exchange Management Act.