Bengaluru: Once celebrated as India’s biggest EdTech success story, Byju’s has now become one of the country’s biggest corporate collapses.
The company, which touched a valuation of USD 22 billion during the Covid pandemic, is now struggling with huge debts, lawsuits and unpaid dues. Its dramatic fall has shocked investors, employees and parents across the country.
Singapore Court Adds New Twist
The latest setback came from Singapore, where founder Byju Raveendran was sentenced to six months in jail by a court for failing to comply with disclosure orders linked to his assets.
The case was initiated by a subsidiary of the Qatar Investment Authority (QIA). The court also ordered him to pay legal costs and submit ownership details of a company linked to him.
Raveendran has denied wrongdoing and called the matter a 'procedural contempt' issue. He also said settlement discussions with lenders and investors were ongoing.
Pandemic Boom Created A Giant
Byju’s was founded by former teacher Byju Raveendran and quickly became a popular learning app in India.
During the Covid pandemic, online education demand exploded as schools remained shut. Investors poured billions of dollars into the company, helping it expand rapidly across India and global markets.
The company signed celebrities like Shah Rukh Khan and Lionel Messi for promotions and sponsored major sports events, including the IPL. At its peak, Byju’s claimed over 150 million users.
Aggressive Expansion Became Biggest Mistake
The company’s biggest problem started with rapid expansion and costly acquisitions.
Between 2019 and 2022, Byju’s spent billions of dollars acquiring companies such as Aakash Educational Services, WhiteHat Jr, Toppr and Great Learning. Many of these deals failed to deliver expected growth.
When schools reopened after the pandemic, demand for online learning dropped sharply. However, Byju’s expenses remained extremely high. Losses increased rapidly and the company reportedly burned huge amounts of cash.
Employees And Parents Faced The Real Pain
As financial troubles grew, employees started facing salary delays and layoffs. Many workers reportedly worked long hours under intense sales pressure.
Parents also complained about poor learning services, refund issues and aggressive sales tactics. Several customers claimed they were pushed into expensive courses and EMI plans during difficult times.
Legal Troubles Continue To Grow
Today, Byju’s is fighting multiple legal battles in India and overseas. Creditors are demanding repayments, while courts continue hearing cases linked to financial management and fund transfers.
The company’s collapse is now being seen as a warning sign for startups chasing fast growth without strong financial discipline and governance.
