BYJU’S Isn’t Done Yet: Can India’s EdTech Giant Make a Comeback?

Just a few years ago, BYJU’S was India’s startup poster child, a unicorn soaring high with a $22 billion valuation, thousands of employees, millions of students, and a global footprint that seemed unstoppable. Today, it stands as one of the country’s most dramatic startup downfalls. Accusations, lawsuits, investor exits, ED probes, the fall has been swift, public, and brutal.

But for the first time since this spectacular unraveling began, Byju Raveendran, the man behind the brand, has stepped into the spotlight again. In a heartfelt and explosive interview, the founder broke his silence, pointing fingers, acknowledging mistakes, and promising what he calls a “resilient and reborn BYJU’S 3.0.”

“We Had Everything. Now We Have Nothing.”

In his most candid public comments yet, Raveendran admitted what many had long speculated: the company, once flush with thousands of crores, has been brought to its knees.

“Two years ago, we were sitting on thousands of crores. Today, we have nothing,” he said. The turning point, according to him, wasn’t the lack of capital—it was the choice of capital. “It was not desperation. The mistake was taking a ₹1,000 crore term loan when equity was available. That opened the door to external pressure.”

That door, as it turned out, led to what he describes as a “malicious narrative,” largely pushed by what he called “vulture lenders” in the US—hedge funds that, in his words, turned a business crisis into a personal attack.

The Fast Rise, the Faster Fall

Founded in 2011, BYJU’S grew at an astonishing pace, fueled by aggressive acquisitions, pandemic-driven demand for edtech, and a compelling vision to revolutionize education. By 2022, it had operations in 21 countries and a valuation of over $22 billion. But then came the crash.

Raveendran didn’t hold back. He blamed the company’s over-ambitious global expansion on investor pressure during the COVID boom.

“We grew too fast,” he admitted. “When the world changed—with rising interest rates and the Russia-Ukraine war—$700 million in committed capital dried up.”

The company was left scrambling for liquidity. As investor trust eroded, lawsuits piled up, and internal morale tanked, BYJU’S began to unravel.

Legal Storm and Public Scrutiny

BYJU’S is now knee-deep in regulatory heat, but Raveendran insists the narrative has been blown out of proportion. He dismissed reports of criminal wrongdoing and clarified that the Enforcement Directorate (ED) probe was procedural and not personal.

“There is no PMLA case, no chargesheet, no personal wrongdoing,” he stated. On the rumoured lookout notice? “It’s fabricated. There was no fraud. If there was, why would we return thousands of crores?”

He also questioned why no one was talking about the company’s transparency in cooperating with investigations or returning funds—moves he believes contradict the fraud narrative being painted in public.

The Human Cost of a Corporate Collapse

This isn’t just a business story—it’s also deeply personal. For the first time, co-founder and wife, Divya Gokulnath, opened up about the emotional toll the crisis has taken on their family.

“People walked into our lawyers’ and management’s homes to intimidate us,” she said. “Even our legal teams were threatened with cancellation of licenses.”

She pushed back on claims of financial misconduct, stating that they neither lived a lavish life nor misused company funds.

“We don’t own any luxury cars or homes. We rent. The image being portrayed is completely false.”

And when it comes to legal battles abroad, she made it clear: “We don’t have the money to fight in US courts. Lawyers ask for a million dollars upfront—we don’t have it.”

BYJU’S 3.0 – The Redemption Arc

So what now?

Despite the chaos, both Raveendran and Gokulnath are holding on to hope—and a clear vision. The next chapter of BYJU’S, dubbed “BYJU’S 3.0,” will mark a pivot back to the company’s core: the classroom.

“We belong in classrooms. That’s where we’re going back,” Raveendran said, outlining a model that leverages AI-powered education tools to support teachers and uplift students who are falling behind, rather than trying to replace human educators.

This comeback won’t be powered by flashy VC funding. “We’ve learned. We’ll build lean, sustainable, and with long-term vision,” he said. Unless absolutely necessary, they don’t plan to take any more external capital.

“I’m Broke, Not Broken”

At the heart of the interview lies a stubborn optimism. “I’m broke, not broken,” Raveendran declared.

“True entrepreneurs don’t fail. Business mistakes happen, but the mission lives on.”

He sees the downfall not as the end, but as a second chance to do things right. He acknowledged his missteps but is far from defeated. The mission, he insists, is too important.

“We owe it to the students, teachers, and employees who trusted us.”

A 'Make in India' Story, Still Worth Telling

In a world where many startups have chased global dreams at the cost of local grounding, BYJU’S remained rooted.

“We resisted going abroad to set up base even when others chased lucrative offers,” said Gokulnath. “We said no—this will be a ‘Make in India’ story.”

She emphasized that BYJU’S was never about flashy tech. It was about building the tools they would use for their own child—tools rooted in values, not virality.

A Comeback Against the Odds

It’s easy to write off a fallen unicorn. But behind the lawsuits, financial nosedives, and media frenzy is a founder still clinging to a vision that once changed the face of Indian education.

Will BYJU’S 3.0 succeed in rebuilding trust and impact? Can a startup once burned by scale and speed rise again by going slow, lean, and back to basics?

Raveendran and Gokulnath believe it can. And if they’re right, it could become one of the greatest comeback stories in Indian startup history.

“Why shouldn’t I fight?” Raveendran asked. “This was built by 85,000 people. We owe it to them. We will rebuild—and we’ll do it better.”