'Worth zero': Founder of India's once biggest startup Byju's concedes mistakes
By Arpan Chaturvedi
NEW DELHI, Oct 18 (Reuters) -Byju Raveendran, the founder of what wasonce India's biggest start-up, Byju's, said he overestimated the growth potential of his education-technology company which is now "worth zero" as it faces insolvency, but remains hopeful of rescuing it.
Byju's, which operates in more than 21 countries, became popular during the COVID-19 pandemic by offering online education courses. Its valuation shot up to $22 billion in 2022, but Byju's has for months faced demands for unpaid dues and allegations of mismanagement, which it denies.
"The company is worth zero. What valuation are you talking about? It is zero," Raveendran said during an interaction with reporters via video conferencing from Dubai late on Thursday.
"We overestimated potential growth, entered (a) lot of markets together. It was little too much, too soon," he said in his first media briefing in 18 months.
Byju's was entered into insolvency after U.S. lenders complained to the Indian Supreme Court in August about misuse of $1 billion borrowed by the company.
Raveendran denied all allegations of wrongdoing on Thursday.
Glas Trust, which represents the protesting lenders, did not respond to a request for comment. The Supreme Court is yet to rule on Glas's grievances in dispute with Byju's.
The company was once a darling of global investors, backed by likes of General Atlantic.
It has suffered numerous setbacks in recent months, from boardroom exits and criticism over delayed financial disclosures to the public spat with foreign investors over mismanagement.
Raveendran is an Indian mathematics whiz who went from being a teacher to a startup billionaire before Byju's imploded this year.
"Whatever is coming, I will find a way out," he said on Thursday.
Reporting by Arpan Chaturvedi; Editing by Aditya Kalra and Lincoln Feast.
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