Byjus downfall is such a satisfying thing to watch

But that’s bad for Indian startup ecosystem

Product Manager

Software Developer

Welcome to Indian Startups's Private Community

From hero to zero! Byju’s inching towards bankruptcy

From hero to zero! Byju’s inching towards bankruptcy- Grapevine

Welcome to News Discussion's Private Community

- Byju's founder, Raveendran, declared the company's worth as zero after key investors resigned from the board.
- The resignations made it impossible for the edtech firm to raise further funds.
- Raveendran expressed regret over taking the Term Loan B, which he described as the most expensive capital.
- The company is currently undergoing bankruptcy proceedings, with the National Company Law Tribunal initiating insolvency proceedings against Byju's.
- Despite the crisis, Raveendran remains optimistic about a turnaround and insists there has been no fraud within the company.

Source: [Economic Times](https://economictimes.indiatimes.com/tech/technology/investors-leaving-board-was-biggest-setback-byjus-now-worth-zero-founder-raveendran-our-bureau/articleshow/114320123.cms)

Byju's Founder Declares Company Worth Zero After Investor Exodus

Journalist

So after dodging many bullets Byju's finally goes to Insolvency Trial. 

Does anyone have any news of what's happening inside the company?

Byju's & Insolvency ❌

Program Manager

https://thearcweb.com/article/byju-raveendran-1-billion-agm-8SWZHKi0REGjA6g4

Byju’s has faced consolidated losses of nearly Rs 8,300 crore ($1 billion) in FY22... Reminds me of "जितने का बबुआ नहीं उतने का झुनझुना"

Software Engineer

Feedback letter from employee to Founders, CEO & CTO

Heartwarming message from ex-Byjus employee to founders.

For details just reply to this email. I will email an excel sheet of all of your failures 
 😂Lmao, that was🔥

Byju's now valued at $0 🙈

Most of us are curious of how decisions are made in major VC funds, as these funds are private and only share this information with their Limited Partners (LPs).

For the unknown, there are VC funds known as Corporate Venture Capital funds, which are the venture arms of corporate firms; they are required to disclose the performance of their CVC funds to the general public.

Prosus, one of the largest funds in this category, has just released its 2024 Annual Report, so thought it would be helpful to share the key takeaways with you all. So, here we go:

1/ Swiggy: On the Launchpad
Swiggy continues to impress with a 26% surge in its gross order value and a robust user base that's grown to 104 million. The food delivery giant isn't just expanding—it's preparing to soar with a confidential IPO filing. Swiggy's blend of core deliveries and quick-commerce ventures positions it as a frontrunner in the food-tech race.

2/ Byju's: A Reality Check
The tides have turned for Byju’s, once a darling of the edtech world, now facing a stark reality with a $493 million valuation write-down by Prosus. This significant markdown is a wake-up call to the high-flying valuations in the edtech sector, spotlighting the need for sustainable financial health over speculative growth.

3/ PayU: Quietly Confident
While specific updates on PayU were sparse, its role in Prosus’s fintech ambitions remains pivotal. PayU continues to weave through Prosus's strategy, likely focusing on enlarging its digital payment solutions and tapping into burgeoning financial service opportunities in emerging markets.

4/ PharmEasy: Unsung Potential
PharmEasy's story remains under the radar in this year’s dispatch. However, as a component of Prosus's health tech ventures, it’s poised to play a crucial role in expanding accessible digital healthcare solutions, streamlining services from prescriptions to doorstep delivery.

The Bigger Picture? Prosus's strategy paints a vivid portrait of India's evolving startup ecosystem. It's no longer just about rapid growth and sky-high valuations. The game has changed:

1/ Sustainability is king: Byju's fall from grace is a stark reminder that financial health trumps speculative growth.
2/ IPO readiness matters: Swiggy's preparations show the market's appetite for well-prepared tech giants.
3/ Quiet expansion: PayU and PharmEasy's low-key presence suggests strategic focus on steady growth over flashy headlines.
4/ Diversification is key: Prosus's varied portfolio highlights the importance of spreading bets across sectors.

Checkout their annual report at https://www.prosus.com/~/media/Files/P/Prosus-CORP/AR2024/1latestfinancialresults/04annualreport/fy2024annualreport.pdf - happy reading!

Would you like more breakdowns of such reports and documents? Let us know in comments below 👇🏽

Key takeaways from Prosus 2024 Annual Report

The Morning Vine 🍇

Wtf is happening at Byjus?

Analyst

With ED issuing lookout notice for the founder, is this how Byju's will go down?? Things have not been looking up for the decacorn startup since last year, but with rights issue being fully subscribed, there was hope that things might take a turn for the better.

With EGM this Friday to ouster the CEO and his family from board and ED lookout notice just prior to it, is this the end of the road for the maverick founder??

End of road for Byju Raveendran

Heard from a friend that Byju’s has filed for bankruptcy. Can someone from Byju’s confirm this?

Byju’s files for bankrupcy?

Product Designer

- BYJU'S founder and CEO Byju Raveendran claims the company is on the brink of reversing its negative business cycle and launching BYJU'S 3.0, an AI-driven educational platform.
- Raveendran stated that the founders have infused approximately INR 7,500 Cr into the company over the past 29 months to meet operational needs.
- The company has failed to clear July 2024 salaries, with Raveendran blaming lenders and promising prompt payment once control is regained.
- Despite financial challenges, BYJU'S remains the largest edtech platform globally with 150 Mn monthly users, transitioning to a sustainable business model.
- Raveendran addressed ongoing legal battles with US-based lenders and denied any personal investigation by the Directorate of Enforcement. 

 Source: [Inc42](https://inc42.com/buzz/byjus-on-the-verge-of-a-turnaround-investors-ready-to-back-the-company-byju-raveendran/)

BYJU'S On The Verge Of A Turnaround, Investors Ready To Back The Company: Byju Raveendran

- Byju's auditor BDO (MSKA & Associates) has resigned, citing lack of transparency and pending legal issues.
- The resignation letter highlighted inadequate support from Byju's management in providing necessary audit information.
- Byju's co-founder Byju Raveendran called the resignation a blackmail tactic, claiming compliance with all auditor requests.
- BDO requested a forensic audit after Byju's admitted insolvency in July and mentioned loss of control over some subsidiaries.
- This marks the second auditor resignation in 15 months, following Deloitte's exit last year over delayed financial statements. 

 Source: [Entrackr](https://entrackr.com/2024/09/byjus-auditor-resigns-over-lack-of-transparency-founder-cries-foul/)

Byju's Auditor Resigns Amid Transparency Concerns; Founder Alleges Blackmail

I hear tales about how at their peak, BYJU's used to deal with investors. 
They would not share financials. If you wanted to invest, they'd ask you to come down to office, and only for that time, see whatever you want to see. 

Investors obliged. It was the shining star of Edtech India, nobody wanted to miss out. 

Now those same investors are ousting the founder, fair enough.

But I hope enough people look back and realize they created the problem. They allowed it to exist.

BYJU's: Wasn't it always gonna happen?

Absolutely crazy stuff. To summarize what I read: 

1) Byju's apparently transferred $533Mn to Camshaft Capital - a random hedge fund in Miami that was started by a 23 year old, with barely any investing experience. 
2) This hedge fund is run out of a building that has an iHOP (yes the food chain). When asked about the whereabouts, nobody even recognizes if the fund actually exists there
3) This fund typically accepts only upto $50Mn. How come Byju's transferred $533Mn to them?
4) 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith -> All registered on this fund's papers 
5) Now, Byju's lenders have filed a case against Camshaft in the US.


Link to original article: https://www.bloomberg.com/news/articles/2023-09-12/byju-s-hid-533-million-in-hedge-fund-camshaft-run-from-miami-ihop-lenders-say#xj4y7vzkg

Byju’s Hid $533 Million in Fund Run out of an IHOP outlet 🤯

The games that the rich and wealthy play. We're way to far away from it. And we'll probably never get it? 

Fuck it

- Byju's, once valued at $22 billion, faces insolvency proceedings, likely forcing thousands of employees to quit and shutting down services.
- The company, backed by investors like Prosus and General Atlantic, has faced job cuts, valuation collapse, and investor disputes over corporate governance.
- An Indian tribunal triggered insolvency after a $19 million payment dispute with the cricket board, freezing Byju's assets and suspending its board.
- Vendors may default, leading to a total shutdown of Byju's online platforms, according to CEO Byju Raveendran's court appeal.
- Byju's, with 27,000 employees, became popular during the pandemic for online courses and in-person coaching; the court will hear the case on Monday. 

 Source: Reuters

Insolvency Proceedings Will Force Thousands Of Employees To Quit: BYJU’S CEO

Remember that poem 'Ozymandias'

Business Analyst

Sad state of Indian Edtech. Next would be Unacademy.

BlackRock has yet again cut the value of its holding in Byju's, slashing the implied valuation of the Indian startup to $1 billion from $22 billion in BlackRock has cut the value of its holding in Byju's, slashing the implied valuation of the Indian startup to $1 billion from $22 billion in early 2022.

BlackRock cuts Byju's valuation by 95% to $1 billion | TechCrunch

Just in : BlackRock cuts Byju’s valuation by 95% to $1 billion 🌀

https://www.ndtv.com/business-news/byjus-faces-total-shutdown-if-insolvency-proceeds-says-ceo-byju-raveendran-6141875

Byju’s on the verge of shutdown

Chartered Accountant

News: Byjus appoints Upgrad's ex-CEO Arjun Mohan as it's new CEO

So will the company also be renamed to Mohan's?

Engineering Manager

First the audit report got delayed. Now they’ve reported a loss of over 4.5k cr. And I believe they’re like a mothership of edtech, if they gone down then the entire category goes down from an investment perspective

From hero to zero! Byju’s inching towards bankruptcy

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