Byju Raveendran blamed BYJU’S investors for the company's downfall as the edtech giant's valuation now stands at zero.
He claimed that investors pushed for aggressive expansion but deserted the company when the market turned
Raveendran said that three of BYJU’S marquee investors quitting its board together last year made it impossible for the edtech giant to raise funding
Byju Raveendran, cofounder and CEO of BYJU’S, blamed investors for the company’s downfall as the edtech giant’s valuation now stands at zero.
During a virtual press conference, Raveendran claimed that investors pushed for aggressive expansion but deserted the company when the market turned.
He said that the $1.2 Bn Term Loan B from the US-based lenders was used for both organic and inorganic growth, including global acquisitions.
“I thought we made the best decision in the world when we took the Term Loan B (TLB). It was the easiest capital, but it became the most expensive one,” the CEO said.
He added that all three directors resigned within two weeks from the US lenders calling default and filing the case in Delaware court.
“Those three board members resigning together… is what made it almost impossible for us to do any more fundraising or equity raising. Even if they wanted to resign, if a transition or a vote for reconstitution had been planned, the company wouldn’t be in the situation it is today,” he said.
Raveendran was referring to the representatives of Peak XV Partners, Prosus, and Chan Zuckerberg Initiative quitting the board in June last year, after the edtech giant missed the payment on its term loan.
According to Raveendran, since the market turned in December 2021, “the only people who have been putting money in the company are us.”
Earlier this year, Raveendran told the employees of BYJU’S
that he, his wife Divya Gokulnath, and brother Riju Raveendran pumped in INR 7,500 Cr in BYJU’S parent Think & Learn Pvt Ltd (TLPL) over the previous couple of years.
Notably, BYJU’S key backers like Sofina, Peak XV, and General Atlantic moved to oust Raveendran in February, citing mismanagement.
Once the posterboy of the Indian startup ecosystem, the edtech startup has been plagued by multiple problems over the last few years and is now undergoing insolvency proceedings.
