Forbes Richest List 2024: Byju Raveendran was a major figure in several respected "world's richest" lists, and a year ago, his net worth was estimated to be Rs17,545 crore ($2.1 billion). But according to the most recent Forbes Billionaire Index 2024, Raveendran's net worth has completely collapsed.
This sharp reduction marks a significant setback for the well-known personality in India's startup scene and comes after a string of crises that had a negative effect on the once-thriving edtech firm.
Taking note of Byju's removal from the list, Forbes said "Only four people from last year's list dropped off this time, including former edtech star Byju Raveendran, whose firm Byju's was enveloped in multiple crises and its valuation was marked down by BlackRock to $1 billion, a fraction of its peak $22 billion valuation in 2022."
Rise and collapse of Byju
Byju's, the most valuable company in India, was founded in 2011 and gained rapid traction, peaking at $22 billion in valuation in 2022. Raveendran's creation, an inventive learning software that caters to pupils ranging from elementary schoolers to MBA hopefuls, completely changed the education industry. But the company's finances have taken a serious hit as a result of escalating issues and recent financial disclosures.
The company's difficulties were made clear when Byju's long-overdue financial reports for the fiscal year that ended in March 2022 were revealed, showing a significant net loss of more than $1 billion. Due to this terrible financial result, BlackRock, a large investor, decided to drastically cut its Byju's valuation, which was previously at its height, to barely $1 billion.
In addition, Byju Raveendran has come under heavy fire because of the failing state of his business. Prosus NV and Peak XV Partners, among other shareholders, recently voted to remove Raveendran from his position as CEO, intensifying a conflict over the future of the formerly profitable online tutoring firm that is currently fighting for survival.
Furthermore, the Enforcement Directorate (ED) has taken notice of Byju's overseas interests. The ED sent show cause notifications to Byju's parent business, Think & Learn, citing suspected Foreign Exchange Management Act (FEMA) breaches totaling more than Rs 9,362 crore, prior to issuing a lookout circular against its founder.
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