From Debt Crisis to New Ambitions: Byju’s CEO Raveendran Reflects on Hard Lessons and the Road Ahead

Byju Raveendran, founder and CEO of the embattled edtech giant BYJU’S, has publicly acknowledged the company’s missteps that led from a $22 billion peak valuation to a daunting $1.2 billion debt crisis. In a candid series of interviews, Raveendran admitted that the decision to secure a $1.2 billion term loan in 2021-despite having raised $5 billion in equity prior-was a critical error. He revealed that this move, made collectively with the board and under intense investor pressure to “grow, grow, grow,” left the company vulnerable when global conditions changed dramatically.

 

Raveendran explained that BYJU’S rapid expansion into 21 countries was driven by investor mandates during the pandemic, but the pace proved unsustainable. The onset of the Russia-Ukraine war, rising interest rates, and a sudden liquidity crunch saw $700 million in committed capital vanish, derailing the company’s aggressive acquisition and growth plans. The CEO also pointed to technical loan defaults triggered by regulatory changes, which were exploited by lenders to seize control and initiate legal battles in US courts.

 

Despite these setbacks, Raveendran remains resolute, emphasizing that BYJU’S is “broke, but not broken.” He highlighted the company’s impact in creating thousands of teaching jobs and reaffirmed his commitment to rebuilding, with a renewed focus on sustainable growth and responsible expansion. The leadership is now charting a cautious path forward, aiming to restore trust and reposition BYJU’S as a leader in the edtech space.

 

Sources: Moneycontrol, Financial Express, Times of India, Economic Times, Business Today