BYJU’S Founder Admits Business Mistakes, Cites Russia-Ukraine War for Funding Crunch
Byju Raveendran, the founder of the Indian edtech giant BYJU’S, has openly admitted that the company made “some business mistakes” by expanding too quickly during the COVID-19 pandemic. Speaking to ANI news agency, Raveendran said that although the company could have taken a slower approach, it had to follow the growth mandate from its global investors.
Byju Raveendran, the founder of the Indian edtech giant BYJU’S, has openly admitted that the company made “some business mistakes” by expanding too quickly during the COVID-19 pandemic. Speaking to ANI news agency, Raveendran said that although the company could have taken a slower approach, it had to follow the growth mandate from its global investors.
BYJU’S rapid expansion saw the company venture from India into 21 new countries between 2019 and 2021. This aggressive growth strategy was driven by pressure from its 160 world-class equity investors who demanded swift scaling to transform the way children learn.
However, Raveendran revealed that the promised investments, totaling around $700 million, failed to materialize due to external macroeconomic factors — primarily the Russia-Ukraine war and rising interest rates in the U.S. Federal Reserve. These events led to a sudden drying up of liquidity, severely impacting BYJU’S expansion and acquisition plans.
“In early 2022, we were planning acquisitions and growth under the assumption that the committed capital would arrive,” Raveendran explained. “But as the war broke out and interest rates increased, that liquidity just vanished. We have been struggling for liquidity for almost three years now.”
BYJU’S, launched in 2015, caters to students from kindergarten through class 12. It achieved unicorn status in 2019 with a valuation of over $1 billion and reached its peak valuation of $22 billion in 2022. Despite its meteoric rise, the startup now faces significant challenges due to the halted funding and broader economic uncertainties.
Byju Raveendran’s candid remarks highlight the hurdles faced by even the most successful startups when navigating global crises and investor expectations during volatile times.
Sources By Agencies
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