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Byju Raveendran plans to launch a new edtech venture after Byju’s faces financial and operational issues.
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Raveendran blames investors for prioritizing growth over student and parent interests.
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Byju’s valuation has dropped to zero, but 26 subsidiaries still generate Rs 5,500 crore in annual recurring revenue.
Byju Raveendran, founder of troubled edtech giant Byju’s, has announced plans to start a new edtech venture. Despite Byju’s facing multiple litigations, financial woes, and a valuation drop to zero, Raveendran remains committed to the education sector.
Raveendran criticized Byju’s investors, including Sofina, Peak XV, Prosus, and General Atlantic, for prioritizing growth over student and parent interests. He claimed that investors aggressively backed expansion but quickly abandoned the company when troubles arose. Raveendran and co-founders intend to stay in the edtech business, focusing on sustainable growth.
Byju’s rise and fall serve as a cautionary tale for the edtech industry. Raveendran acknowledged overestimating growth potential and making costly acquisitions, such as Whitehat Jr. However, he highlighted the success of the Aakash acquisition. With 26 subsidiaries generating Rs 5,500 crore in annual recurring revenue, Raveendran sees potential for revival.
Raveendran’s new venture aims to operate at “half the cost” of Byju’s, indicating a more sustainable approach. As the edtech landscape evolves, Raveendran’s next venture will be closely watched.
