Summary – “Byju Raveendran’s Disruptive Impact on Edtech Industry”
• CEO Gaurav Munjal criticizes founder of troubled ed-tech business, Byju’s, for ignoring feedback.
• Munjal cites “blank feedback” as a significant factor in Byju’s decline.
• Munjal warns of “bloated” 2021 company valuations and urges entrepreneurs to act on criticism.
• UpGrad’s Ronnie Screwvala warns of reputational damage due to Byju’s.
Byju Raveendran, the founder of the troubled ed-tech business Byju’s, put himself on a pedestal and stopped listening to anyone, according to Gaurav Munjal, the CEO of edtech startup Unacademy.
Munjal emphasized the significance of ‘blank feedback. In a post on X, he said that Byju’s creator stopped listening and did not have anyone who could provide him with accurate criticism.
Gaurav Munjal stated that all 2021 company valuations were “bloated” and that entrepreneurs should constantly “act” on criticism.
Earlier this year, upGrad’s Ronnie Screwvala stated that owing to ‘one bad fruit’ (BYJU’S), the whole industry was experiencing reputational damage.
Munjal questioned Raveendran’s leadership and capacity to receive input. “You might not always like the feedback, but take the feedback and act on it,” Munjal told the reporter.
Munjal, who is also the co-founder of the SoftBank-backed Unacademy, was discussing his experiences from the previous two years.
On Wednesday, the Ministry of Corporate Affairs stated that actions begun against edtech player Byju’s under the Companies Law are “still ongoing” and that no conclusion can be formed at this time.
Munjal is now the fourth Indian edtech cofounder to weigh in on BYJU’S’s difficulties. Ronnie Screwvala of upGrad stated in February that the industry’s image was suffering as a result of ‘one bad fruit’.
In response to a tweet regarding BYJU’S shareholders conducting an extraordinary general meeting (EGM) to dismiss Raveendran and his family, Screwvala said on X, “Finally someone smelt the coffee!! I hope it’s not a whiff followed by a whimper, but they’ll stick with it and get this done for the entire environment! Consider India as an investment location! For the sake of general credibility in an otherwise bright and sunny industry.”
This year, the government requested an inspection of Byju’s books. These were linked to a number of incidents at the edtech business, including its difficulty to finalize the statements and the resignation of an auditor.
Prosus, an investment firm, has written down the value of its 9.6% interest in Byjus. This is likely one of the largest write-offs in tech companies by a well-known investor.
Prosus’ investment in the firm resulted in a $493 million fair value loss, according to the Dutch tech investor’s FY24 annual report, which was released on June 24.
Byju’s and its investors are litigating at the National Company Law Tribunal over the company’s $200 million rights issue, citing mismanagement.
BYJU’S raised billions of dollars from prominent names in the venture capital (VC) and private equity ecosystems during the height of the pandemic-hit financing boom in 2020 and 2021.
However, as the pandemic-era boom slowed and schools reopened, the edtech giant was confronted with concerns about sustainability and profitability. As funding winter exacerbated the challenges of acquiring money in 2022 and 2023, the corporation found itself at a crossroads, as a slew of acquisitions in prior years failed to pay off.
CONCLUSION :Byju Raveendran, founder of troubled ed-tech business Byju’s, has been accused of putting himself on a pedestal and not listening to feedback, according to Gaurav Munjal, CEO of Unacademy. Munjal emphasized the importance of constant criticism for entrepreneurs.
