Byju's: From Decacorn to Crisis

How edtech firm Byju's grew into India's most valuable startup, expanded through costly acquisitions and aggressive sales, and fell into crisis with delayed accounts, lender disputes and insolvency.

Byju’s, founded by Byju Raveendran, became India’s most valuable startup.

The rise

Its learning app grew rapidly, especially during COVID-19 school closures.
Its valuation reached around 22 billion dollars in 2022.

Expansion

It acquired firms like Aakash Educational Services (about 950 million dollars, 2021), WhiteHat Jr and Great Learning.
It borrowed a 1.2-billion-dollar term loan from US lenders.

Problems

Aggressive sales tactics drew complaints from parents.
Delayed financial results and auditor Deloitte resigned in 2023.
Large losses.

Disputes

Lenders disputed the loan; courts in the US and India became involved.
In 2024, insolvency proceedings began after a dispute over dues with the BCCI, whose jersey Byju’s sponsored.

Valuation collapse

Investors marked down their stakes to a small fraction of the peak.

Lesson

Governance, cash discipline and sustainable growth matter more than valuations.

The sales call

Parents complained of repeated sales calls pushing expensive course packages financed with loans.

Thinking high valuations mean a healthy company

Byju's fell from a 22-billion-dollar valuation into crisis.

Key takeaways

Byju's reached a valuation of about 22 billion dollars in 2022.
It made costly acquisitions like Aakash.
Delayed accounts, auditor resignation and lender disputes followed.
Insolvency proceedings began in 2024.