BYJU'S founder Raveendran broke down amid crises: Report
Byju Raveendran, the founder of BYJU'S, broke down in tears after the Enforcement Directorate (ED) raided the Bengaluru offices of the company in April, Bloomberg reported. Reportedly, Raveendran paced his Dubai condo while downing cups of coffee and defending his company before investors. Notably, the probe agency had linked BYJU'S—the world's most valued education-technology start-up—with foreign exchange violations.
Dutch investor accused BYJU'S of poor governance
The revelation comes a day after Prosus NV, an investor in BYJU'S, said on Tuesday that it had given up its board seat due to the company's disregard for directors' advice and recommendations relating to strategic, operational, legal, and corporate governance matters. This year, the Dutch investment firm reduced the valuation of BYJU'S from $22 billion to $5.1 billion.
Company is accused of hiding half a billion dollars
BYJU'S is currently grappling with multiple crises. These include its failure to submit financial accounts on time, missing an interest payment on its term loan, and being embroiled in a legal dispute with creditors. The situation escalated further as several United States (US)-based investors alleged that BYJU'S concealed half a billion dollars, prompting lawsuits.
Raveendran's problems began after COVID-19 pandemic
Raveendran, once a private tutor, led his idea to a $22 billion company, captivating top global investors, including Sequoia Capital, Blackstone Inc., and Mark Zuckerberg's foundation. BYJU'S also benefited from the COVID-19 pandemic. However, after physical classes reopened, worries about BYJU'S finances began to cast doubt on the firm's reputation.
Criticism faced by Raveendran
Investors raised questions about why Raveendran had postponed hiring a chief financial officer for years and pursued a rapid acquisition spree of more than a dozen companies worldwide. Moreover, several employees left or were terminated, board members resigned, and many teaching centers witnessed declines in student enrollment. Critics argue that he displayed recklessness by concealing financial information and neglecting to conduct thorough audits.
