• Source:JND
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Byju's crisis:  The future of Byju Ravindran, founder and CEO of troubled ed-tech company Byjuy's, is uncertain as an extraordinary general meeting (EGM) is scheduled for today. Some stakeholders, including the global tech investors, want Mr Ravindran to be removed and installed on the new board.

Byjuy's, once recognized as India's most successful startup with a valuation of over $20 billion, has had a rough last year as it saw a decline of approximately 90 per cent of its valuation. The company, which boosted its users during the Covid pandemic, is now facing several problems. Some major investors have pulled out, a legal battle with U.S. lenders over more than $1.2 billion in debt, Deloitte has stopped being its auditor.

Ravindrana, ahead of the meeting said that the Karnataka High Court ruled that any decisions taken at the meeting would not count until the next hearing. Byjus claimed that the act was being done to disrupt the company's management and control.

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ED Notice

Amid all other problems, as part of the Foreign Exchange Management Act (FEMA), the Enforcement Directorate (ED) recently raised a lookout notice against Ravindran. The probe agency asked the Bureau of Immigration to ensure that he does not leave the country.

Ravindran's Journey

Byju's started its venture in 2006 by offering classes to MBA aspirants, who were preparing for CAT. Before launching Byju's learning app in 2015, the ed-tech institution had diversified its reach from postgraduates to undergraduates and school students as well. The application helped the firm become India's first ed-tech unicorn company in four years.

Major reasons for the downfall

The Covid pandemic emerged as a turning point for Byju as schools were closed and education quickly shifted to online platforms. Meanwhile, the company secured sponsorship deals with the Indian cricket team and appointed Lionel Messi, a world-famous football player, as its global ambassador.

However, allegations of a toxic work environment and aggressive marketing practices that allegedly harassed parents began and that led to the downfall of the firm.

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