Byju Raveendran, co-founder and CEO of Byju’s, said the exit of key investors in the company affected its ability to raise funds.

What Happened: In a social media interaction, Raveendran said Prosus, Peak XV Partners and the Chan Zuckerberg Initiative exiting the company’s board at the same time in 2023 made it impossible for the company to raise fresh funds.

In a virtual press conference, Raveendran said Prosus has written off their investments in the company and Byju’s is worth nothing today.

Byju’s took a $1.2 billion (around ₹10,088 crore) term B loan in 2021 when interest rates were low. However when the interest rates increased and the company skipped an interest payment in 2023, the lenders took the company to U.S. court.

Raveendran said the investors “threw Byju’s under the bus” when the lenders filed for default in the U.S Court.

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The CEO of the once most-valued startup in India said he did not run away to Dubai. He said he came to Dubai for his father’s treatment. He also added that he will come back to India.

At its peak, Byju’s was valued at $22 billion (₹1.82 lakh crore). In January 2024, Blackrock had cut its valuation to $1 billion (₹8,302 crore)

Users on social media criticised Byju’s for blaming everyone except himself for the company’s struggles. Hansal Mehta, director of the series Scam 1992 wrote in an X (formerly known as Twitter) post that his daughter scored As in her exams and is studying abroad despite Byju’s trying to sell her a course during the pandemic, claiming she was academically poor.

Other users wrote also slammed Byju for blaming external circumstances rather than taking responsibility for the company’s collapse.

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