Even by the standards of India’s febrile start-up scene, the rise and fall of Byju’s, an educational technology or “edtech” company, has been startling. Founded by “charismatic former maths teacher” Byju Raveendran, the firm sold tutoring services to millions of parents seeking to prepare their children for the country’s “brutally competitive school entrance exams”, says the Financial Times. Credited with reshaping the landscape of online education, it attracted big-name backers such as Mark Zuckerberg, BlackRock and Dutch tech investor Prosus – becoming India’s most valuable start-up in 2022, worth an estimated $22 billion. Two years on, both the firm and its founder’s reputation are in tatters, and creditors are scrambling to claw back cash.
Byju's impact on education in India
In a somewhat farcical exchange with a US judge earlier this year, Riju, the sole director of US-based Byju’s Alpha (a company set up to receive loans), was tasked with explaining the whereabouts of some $533 million. “I really don’t know,” he replied, assuring the judge “he had sent emails” to his housemates asking the same question. Unsurprisingly, says the Indian online news channel Wion, big questions are being asked about corporate governance and management practices. Auditor Deloitte pulled out in 2022 citing “delayed financial statement submissions”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In 2007, Raveendran and his wife founded a company that eventually became Think and Learn, says the FT. Word of his innovative methods – and the results he was getting – quickly spread. Within a couple of years, Raveendran was travelling to “nine cities a week” across India, taking maths classes in “packed stadiums”. Ultimately, they decided that the only way to manage demand was to go digital and, in 2015, launched the main Byju’s app. The couple offered smartphone- or tablet-based learning to students from primary school age upwards, proclaiming they were “on a journey to revolutionise education in India” – a message that resonated with major investors, including the Chan Zuckerberg Initiative and Sequoia Capital, whose arrival transformed Byju’s into a billion-dollar start-up. The pandemic lockdowns put growth on steroids – and Byju’s expanded rapidly via mergers and acquisitions internationally. When interest rates started to rise and “the cheap money dried up, the value of the company plunged and investors were forced to write off stakes worth hundreds of millions of dollars”.
The paperchase continues
Holed up in his luxury base in Dubai, Raveendran denies any allegation of fraud, says Business Times (India) – and, indeed, blames his backers for Byju’s meltdown. “Investors didn’t care about students or parents, they just wanted me to create a $100 billion company,” he lamented on a recent call with journalists, claiming they ran away at the first sign of trouble. He has also launched a countersuit against his US lenders, accusing them of unfairly accelerating loan terms and negotiating in “bad faith”. “I have felt like a man screaming into a hurricane of hurdles,” wrote Raveendran in a memo to Byju’s remaining (unpaid) staff in August. Meanwhile, the money paper chase continues.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Why pension transfers are so trickyInvestors could lose out when they do a pension transfer, as the process is fraught with risk and requires advice, says David Prosser
-
The political economy of Clarkson’s FarmOpinion Clarkson’s Farm is an amusing TV show that proves to be an insightful portrayal of political and economic life, says Stuart Watkins
-
The political economy of Clarkson’s Farm
Opinion Clarkson’s Farm is an amusing TV show that proves to be an insightful portrayal of political and economic life, says Stuart Watkins
-
How to profit from the UK leisure sector in 2026The UK leisure sector had a straitened few years but now have cash in the bank and are ready to splurge. The sector is best placed to profit
-
Who won the streaming wars?The battle of the TV and film streaming giants for dominance looks to be entering a final phase. The likely winner may surprise you, says Simon Wilson
-
'Investors should expect a good year for equities'Opinion The economy is positive, and investors are still cautious, says Max King
-
The most influential people of 2025Here are the most influential people of 2025, from New York's mayor-elect Zohran Mamdani to Japan’s Iron Lady Sanae Takaichi
-
8 of the best properties for sale with indoor gymsThe best properties for sale with indoor gyms – from a four-storey mews house in London’s Knightsbridge, to a 1920s Arts & Crafts house in Melbury Abbas, Dorset
-
Top stock ideas for 2026 that offer solidity and growthLast year’s stock ideas from MoneyWeek’s columnist and trader, Michael Taylor, produced another strong performance. This year’s stocks look promising too
-
Market predictions for 2026: Will Dubai introduce an income tax?Opinion My 2026 predictions, from a supermarket merger to Dubai introducing an income tax and Britain’s journey back to the 1970s
