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 their investments in what was once India’s most valuable startup.

“I have been on the 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, the simultaneous resignation of three key investors—Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative—was a major blow to Byju’s, hindering the 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 the Delaware court, the three board members resigned within two weeks, a move that, he said, made further fundraising or equity raising nearly impossible. "Even if they had planned a transition or a vote for reconstitution, the company wouldn’t be in the situation it is today," he told reporters.

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

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 the Chan Zuckerberg Initiative had all stepped down from Byju's board.

The founder also addressed the 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 the Term Loan B (TLB) was the best decision at the time—it was the easiest capital to access but ultimately became the most expensive,” he said.

Raveendran noted that the company's liquidity crisis worsened during a time when it was still midway through many acquisitions, exacerbated by a changing global financial environment and the 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 the country until legal disputes are resolved. Despite these challenges, he expressed determination to revive the company, calling Byju’s his mission rather than just a business venture.

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

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

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

The US lenders had also pushed for the repayment of the $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 the Supreme Court regarding the matter.