Byju's founder and CEO Byju Raveendran, whose net worth soared to ₹17,545 crore a year ago, has seen his wealth plunge to zero, according to Forbes World’s Billionaires List 2024, which was released recently.
Byju's, which was once seen as one of the most valuable start-ups, has been facing a series of setbacks in recent times, including alleged accounting irregularities, cash flow problems, resignation of auditors, and a dispute with creditors over a $1.2 billion loan. The embattled edtech company has also been laying off employees and delaying salaries in recent months. Nearly 3,000-3,500 people have been affected by layoffs so far.
Forbes said in a note: "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," according to media reports.
Byju's had closed the $200 million rights issue in February at a 99 per cent lower valuation compared to its peak enterprise value of $ 22 billion.
Last year, Byju's auditor, Deloitte, and three of its prominent board members exited the company, raising concerns about the the edtech major's financial health and governance practices.
Recently, some of the investors of the company had filed an oppression and mismanagement suit against the company management before the National Company Law Tribunal (NCLT), seeking to oust the founders, including CEO Raveendran, and appoint a new board.
