Founder Byju says his edtech startup, once worth $22 billion, is now “worth zero”

Byju Raveendran, founding father of troubled edtech group Byju’s, admitted Thursday afternoon that he made mistakes, mistimed the market, overestimated growth potential and that his startup, once valued at $22 billion, is now worth “zero.”

Speaking to a gaggle of journalists, Raveendran said the corporate’s aggressive acquisition of over two dozen startups to expand into recent markets turned disastrous when funding dried up in 2022. Byju’s had planned to go public in early 2022, and several other investment bankers had provided the corporate’s valuation. as much as $50 billion, TechCrunch previously reported.

He alleged that most of the greater than 100 investors encouraged him to proceed aggressive expansion into as many as 40 markets. But he added that these very investors chickened out when global markets collapsed after Russia invaded Ukraine, sending the enterprise capital market right into a downward spiral.

Raveendran said lots of its investors “flighted” and the departure of three key backers – Prosus Ventures, Peak XV and Chan Zuckerberg Initiative – from the corporate’s board last 12 months prevented the startup from raising additional funds.

Representatives of the three corporations and auditor Deloitte left the startup’s management board last 12 months, citing management issues.

Byju’s has since entered bankruptcy proceedings, and Raveendran, who now not controls the corporate, said: “It’s worth zero. What valuation are you talking about? It’s worth zero.”

Byju’s, once India’s Most worthy startup, counts BlackRock, UBS, Lightspeed, QIA, Bond, Silver Lake, Sofina, Verlinvest, Tencent, Canada Pension Plan Investment Board, General Atlantic, Tiger Global, Owl Ventures and the World Bank’s IFC amongst its backers. More than $5 billion has been raised up to now.

Raveendran said he hopes his startup will make a comeback. “I have nothing to lose. I come from a small village. I invested everything I had in the startup.”