'Byju's Net Worth Now Zero, But...,': Founder Raveendran Vows Comeback Amid Crisis

New Delhi: In 2023, three of Byju's key investors, Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative, resigned from the board, marking a significant blow to the embattled edtech company, to which founder Byju Raveendran revealed on Thursday that this development made it nearly impossible for the company to raise new funds.

During a two-and-a-half-hour media call, Raveendran stated his willingness to repay all dues to lenders, provided they cooperate with him. He warned that continuing insolvency proceedings would leave lenders empty-handed. 

"If they are willing to work with me, I am willing to give them money back before I take a single rupee out," he said. He also highlighted that the company had already paid $140 million of the $1.2 billion Term Loan B (TLB) but was unable to meet further demands.

Byju’s is currently entangled in insolvency proceedings, initially triggered by a ₹158.9-crore dispute with the BCCI, which has since been resolved. However, US lenders, through Glas Trust, challenged the resolution in the Supreme Court, restoring the insolvency case.

Raveendran also emphasized that none of the money raised from US lenders had reached India, as it required Reserve Bank of India approval. He pointed out that certain aggressive lenders were exploiting the company's financial distress for profit.

He further shared that the board, including the investors who resigned, had approved all acquisitions and major decisions. According to him, investors pushed for rapid global expansion and celebrated the $1.2 billion loan raise, only to resign after Glas Trust filed a case in Delaware.

Despite the turmoil, Raveendran remains optimistic about the company’s future. He said, "Our subsidiary has not taken any hits, and at a consolidated level, we will have more than ₹5,000 crore in revenue." He remains committed to his passion for teaching, stating, "Whatever the litigation result, I will continue to teach."

Raveendran concluded by expressing hope that investors would return once they saw value in the company again.