Byju's

Byju's was an Indian edtech company founded in 2011 by Byju Raveendran and Divya Gokulnath.⁴ The company reached a peak valuation of $22 billion in 2022, making it India's most valuable startup at the time.¹³⁴ Byju's entered insolvency proceedings in July 2024 after defaulting on payments and facing legal challenges.¹⁴

Timeline

Money raised

Byju's raised a total of $6.30 billion across 32 funding rounds as of February 2024.⁸ In 2018, Byju's raised $540 million from investors including Tencent and General Atlantic, reaching a valuation of $3.6 billion.⁴ In April 2021, Byju's raised $1 billion in a single week, with a valuation of $12 billion.⁴ In November 2021, Byju's Alpha Inc raised a $1.2 billion term loan from lenders including Glas Trust.⁴⁸⁹ In March 2022, Byju's raised $800 million at a $22 billion valuation, with founder Byju Raveendran investing $400 million.¹⁴⁷ In October 2022, Byju's raised $250 million from Qatar Investment Authority.⁸ In February 2024, Byju's raised $300 million in an undisclosed round.⁸ Byju's spent approximately $3 billion on acquisitions between 2020 and 2022, including Aakash Educational Services ($950 million), WhiteHat Jr ($300 million), Great Learning ($600 million), and Epic ($500 million).⁴

Investors named in the sources: Sequoia⁴, Blackrock¹⁴, Tiger Global¹⁴, Prosus⁴, Chan Zuckerberg Initiative¹⁴¹⁸, Tencent⁴, General Atlantic⁴⁸, Qatar Investment Authority⁴⁸, Vitruvian Partners⁴, Sumeru Ventures⁴, Google⁸, Mirae Asset⁸, IIFL Finance⁸, Davidson Kempner⁸, Helion Venture Partners⁸, Peak XV Ventures¹⁷, Sofina⁴.

What happened

Byju's was founded in 2011 by Byju Raveendran and Divya Gokulnath as Think & Learn Private Limited.⁴ Byju Raveendran was a teacher from Kerala who gained popularity for his engaging teaching style, initially coaching students for the CAT exam in large auditoriums.³⁴¹⁸ The Byju's learning app launched in 2015 and became one of India's most recognizable educational products, offering animated lessons and personalized learning.³⁴ By 2016, the app was the most downloaded education app in India.⁴ Byju's raised significant funding from marquee investors, including the Chan Zuckerberg Initiative, Tencent, General Atlantic, and others.⁴¹⁸

During the COVID-19 pandemic, Byju's user numbers surged from 40 million to 100 million as schools closed and demand for online learning increased.⁴ Byju's raised $1 billion in a single week in April 2021, reflecting the edtech boom.⁴ In 2022, Byju's reached a peak valuation of $22 billion, making it India's most valuable startup.¹³⁴ Byju's spent $40 million to sponsor the 2022 FIFA World Cup.¹ Between 2020 and 2022, Byju's spent approximately $3 billion on acquisitions, including Aakash Educational Services, WhiteHat Jr, Great Learning, Epic, and Tynker.³⁴

In November 2021, Byju's Alpha Inc, a US subsidiary, raised a $1.2 billion term loan from lenders including Glas Trust.⁴⁹ According to court filings, $533 million of the loan proceeds were transferred to Camshaft Capital, a hedge fund with little public profile.⁴¹⁸ In 2023, Deloitte resigned as auditor and three board members stepped down, citing governance concerns.³⁴ The Board of Control for Cricket in India filed an insolvency petition against Byju's for defaulting on a ₹158.9 crore sponsorship deal.⁴ In February 2024, shareholders voted to remove Byju Raveendran as CEO at an emergency general meeting, but he insisted he remained CEO.¹¹⁷

Byju's Alpha Inc filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware in February 2024.⁹¹² Byju Raveendran was ordered by a US bankruptcy court to pay over $1 billion in damages for his role in the missing funds.⁹¹⁰¹³ A Singapore court sentenced Byju Raveendran to six months in jail for contempt of court related to asset disclosure.³ Thousands of employees lost their jobs as the company collapsed.³ Byju Raveendran's personal net worth dropped from approximately $2.1 billion to zero.⁴

The company's valuation was written down to zero by investors such as Prosus.⁴ Byju's faced complaints from parents about aggressive sales tactics and pressure to buy expensive subscriptions.³⁴ The company's U.S. arm filed for bankruptcy, and Raveendran mortgaged his home to pay salaries.¹ A lookout circular was issued against Byju Raveendran by India's Enforcement Directorate in February 2024.¹ Byju's acquired over 19 businesses for $3.63 billion, but the core product was poorly received by some parents.¹

The company's financial statements were delayed, and auditors resigned, raising concerns about financial controls.³⁴ Byju's faced legal battles in India, Singapore, and the United States over loans, assets, and missing money.³ Byju's employees faced unpaid salaries and job losses as the company entered insolvency.⁴ The company's customers, including students and parents, were affected by the disruption of services and loss of trust.³⁴ Byju's founder Byju Raveendran stated that the company was worth zero in October 2024.¹⁸

The company's U.S. employees of Epic and Tangible Play were put into bankruptcy.⁴ Byju's Alpha Inc secured a victory in the US Bankruptcy Court, with a ruling finding Raveendran liable for $533 million on one count and approximately $540 million on others.⁹ Byju's founder Byju Raveendran denied wrongdoing and claimed settlement discussions were close to completion.³ The company's collapse was described as the largest startup failure in Indian history.⁴ Byju's had 150 million peak registered students and 3 million annual paid subscribers.⁴

The company's revenue for FY22 was ₹3,568.6 crore, a 129.99% increase from the previous year.⁸ Byju's had 19,086 employees as of the last reported data.⁸

Legal outcomes

• filedThe Board of Control for Cricket in India filed an insolvency petition against Byju's for defaulting on a ₹158.9 crore sponsorship deal.⁴
• filedByju's Alpha Inc filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.⁹¹²
• filedByju's Alpha Inc filed a lawsuit against Byju Raveendran in the US Bankruptcy Court, alleging fraud related to missing loan funds.⁹
• convictedThe US Bankruptcy Court ordered Byju Raveendran to pay over $1 billion in damages for his role in the missing funds.⁹¹⁰¹³
• convictedA Singapore court sentenced Byju Raveendran to six months in jail for contempt of court related to asset disclosure.³
• filedByju's Alpha Inc filed a motion to claw back a $1 million payment to a financial firm in its Chapter 11 case.¹²
• pendingByju's founder Byju Raveendran stated he would appeal the US court order to pay over $1 billion.¹³

Where the founders are now

Byju Raveendran was ousted as CEO by shareholders in February 2024 but insisted he remained CEO.¹¹⁷ Byju Raveendran moved to Dubai, citing his father's medical treatment.¹⁸ Byju Raveendran's personal net worth dropped to zero.⁴ Byju Raveendran was sentenced to six months in jail for contempt of court in Singapore.³ Byju Raveendran stated he expected to regain control of his company or launch a new platform.¹⁸

Lessons, as others put them

"The collapse of Byju's should be a wake-up call to education entrepreneurs not just in India but around the world—particularly the Western investors, many of whom have great intentions, but who misread the signs."Archish Mittal and Daniel Pianko, authors of the Cornell SC Johnson College of Business article¹

"Don't Build on a Pandemic Tailwind"Value for Startups report⁴

Sources

1. What Investors Should Learn from the Fall of Edtech Unicorn Byju’s, Cornell SC Johnson College of Business, 2024-07-01
3. From $22 billion to zero: Success, not failure, brought Byju down, The Economic Times, May 27, 20
4. BYJU'S Collapse — $22B Peak to Bankruptcy, Business Model Lessons | VFS, valueforstartups.in
7. Byju's raises $800 Mn at $22 Bn valuation; founder infuses ..., entrackr.com, Mar 11, 20
8. BYJU'S Funding 2026 – Total Funding, Rounds & Investors, Datalabs
9. Quinn Emanuel Team Secures Victory for BYJU, quinnemanuel.com, Dec 2, 202
10. US bankruptcy court orders Byju's founder to pay $1bn, ft.com, Nov 21, 20
12. Byju's Defends Bid To Claw Back $1M Intro Fee In Ch. 11 - Law360 Bankruptcy Authority, law360.com, Aug 25, 20
13. Byju's founder to appeal U.S. court order to pay over $1B in ..., finance.yahoo.com, Nov 22, 20
17. Byju's founder, ousted by shareholders, insists he is still the CEO | TechCrunch, TechCrunch, 2024-02-24
18. The math tutor and the missing $533 million, Rest of World, 2025-05-27

How this case file was put together

Every statement on this page carries a numbered note, and every note points to a court record, a regulatory filing or a named publication in the list of sources. Each statement was checked against the text of the sources it cites before it was published: a figure, a date or a name the cited source does not contain was cut rather than kept. Allegations are shown as allegations, with their status at the time of the source (filed, charged, convicted, pleaded, settled, dismissed or pending). Quoted lessons are the words of the person or publication named with them, copied from the cited source; nothing here is our own opinion of why the company failed.

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