Byju’s value is zero, but none can stop me from completing my mission: Raveendran

Raveendran on Byju’s fall: During a press conference on Thursday, Byju Raveendran, founder Byju’s expressed optimism about a turnaround of once a $22 billion edtech startup but stated that Byju’s current valuation was effectively zero, with investors like Prosus having written off ir investments in what was once India’s most valuable startup.

“I have been on edge so many times. For me, it’s a mission, not a business. I will make a comeback, and nobody can stop me from completing my mission,” said Raveendran. 

In 2023, simultaneous resignation of three key investors—Prosus, Peak XV Partners, and Chan Zuckerberg Initiative—was a major blow to Byju’s, hindering edtech giant’s ability to raise capital, according to Byju Raveendran. 

Raveendran explained that when US lenders declared a default and filed a case in Delaware court, three board members resigned within two weeks, a move that, he said, me furr fundraising or equity raising nearly impossible. "Even if y h planned a transition or a vote for reconstitution, company wouldn’t be in situation it is today," he told reporters.

investors, he said, prioritised financial concerns and withdrew ir support at first sign of crisis. “Some board members were worried about liabilities tied to legal filings,” Raveendran ded.

In June 2023, reports surfaced that GV Ravishankar, managing director at Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus, and Vivian Wu from Chan Zuckerberg Initiative h all stepped down from Byju's board.

founder also dressed company’s $1.2 billion term loan secured from US lenders, which was initially used for both organic and inorganic international growth, including several global acquisitions. “I thought taking Term Loan B (TLB) was best decision at time—it was easiest capital to access but ultimately became most expensive,” he said.

Raveendran noted that company's liquidity crisis worsened during a time when it was still midway through many acquisitions, exacerbated by a changing global financial environment and US Federal Reserve’s shift away from its bond-buying programme, coupled with rising interest rates.

Although Raveendran currently resides in Dubai, he stated his intent to return to India. However, he remains restricted from operating in country until legal disputes are resolved. Despite se challenges, he expressed determination to revive company, calling Byju’s his mission rar than just a business venture.

National Company Law Tribunal (NCLT) initiated insolvency proceedings against Byju’s on 16 June 2023 following a petition from Board of Control for Cricket in India (BCCI), which claimed company owed Rs 158 crore in unpaid sponsorship dues.

Raveendran reiterated that re was no fraud involved and that he h reinvested his own money into company. “If re were fraud, founders would have taken money out. But we have always put our money back into company,” he said.

US lenders, represented by Glas Trust Co LLC, have opposed a settlement between Byju’s and BCCI, questioning legitimacy of payments me by Raveendran’s bror Riju Ravindran. However, Raveendran explained that settling with BCCI was a priority as y were company’s largest creditor.

US lenders h also pushed for repayment of $1.2 billion term loan, citing Byju’s failure to meet any payment obligations for over 17 months. In August 2023, a group of investors, including General Atlantic Singapore TL Pte Ltd and Peak XV Partners, approached Supreme Court regarding matter.