Few could have imagined that a tutoring startup endorsed by Bollywood icon Shah Rukh Khan and once worth $22 billion would be removed from the Google Play Store, struggling to pay salaries, and buried under a mountain of debt. But that’s the reality for Byju’s and its founder Byju Raveendran—a once-billionaire now reportedly mortgaging his home to stay afloat.

A Glorious Start: From Tutoring Friends to Teaching in Stadiums

Born in 1980 to teacher parents in a modest Kerala household, Byju Raveendran always had a gift for numbers. After earning a B.Tech and taking a job at a shipping company, he casually helped friends prepare for the CAT exam during a vacation—scoring a perfect 100 percentile himself.

Encouraged by the success of his friends, he quit his job and started full-time teaching. His popularity skyrocketed so quickly that his home classroom couldn’t accommodate students, prompting him to shift classes to stadiums. In 2007, he formally launched Byju’s Classes. A few years later, he co-founded Think & Learn Pvt Ltd with his wife and former student, Divya Gokulnath.

Meteoric Rise: From App Launch to Unicorn Status

Byju’s made its digital debut with an app in 2015, and the growth was explosive:

• 2013: Secured investments from Ranjan Pai (Manipal Group) and Mohandas Pai (Infosys)

• 2016–2018: Raised over ₹1800 crore in funding

• 2018: Valued at $1 billion, becoming India’s first edtech unicorn

• 2020–2021: Soared during the pandemic, acquiring 17 companies including WhiteHat Jr and Aakash Institute

The company’s marketing muscle was unparalleled—SRK, Sourav Ganguly, Lionel Messi, and even FIFA World Cup sponsorship featured in their arsenal. Byju’s also sponsored Team India’s cricket jersey and became a household name.

The Beginning of the Fall: Greed, Speed, and Strategic Missteps

Despite its success, Byju’s overextended:

• Acquired WhiteHat Jr for $300 million, a move that backfired due to negative user feedback and rising losses.

• Burned cash on aggressive marketing while profitability and user satisfaction slipped.

• By 2022, the company’s losses soared to ₹4,564 crore.

• Over-borrowed and couldn’t meet financial obligations.

When schools reopened post-COVID, online classes saw a sharp drop in attendance. Byju’s failed to pivot fast enough. Worse, it delayed filing financial reports for the 2021–22 period, spooking investors and auditors, some of whom resigned.

Investor Confidence Shattered

In 2023, major investor Prosus slashed funding and publicly criticized the company’s lack of governance. Soon after:

• Massive layoffs occurred

• Employees went unpaid for months

• Byju Raveendran had to mortgage his house to pay salaries

• Reports emerged that Google delisted the Byju’s app from its Play Store due to policy violations

By early 2024, the company’s valuation was marked down to zero.

Legal & Regulatory Troubles Add to Woes

As if the business downfall wasn’t enough, India’s Enforcement Directorate (ED) launched an investigation into FEMA (Foreign Exchange Management Act) violations. Simultaneously:

• US lenders filed for bankruptcy proceedings

• Boardroom infighting escalated

• The company became a symbol of mismanagement and overvaluation

The Takeaway: A Billion-Dollar Lesson in Hubris

Byju Raveendran’s journey is not just a tale of riches to rags, but a cautionary case study in startup history. His story mirrors that of many high-flying founders who rise too quickly, expand too fast, and fall too hard.

Despite earning global fame, marquee investors, and celebrity endorsements, poor strategic decisions, acquisitions without synergy, and lack of financial discipline proved fatal.