Introduction
An interactive learning application made BYJU, which was established in 2011 by Byju Raveendran and Divya Gokulnath, the most valuable edtech company in India changing the face of education. By 2022, BYJU had an estimated valuation of $22 billion and more than 150 million registered students. Nevertheless, the company came across serious obstacles by 2025 such as legal cases, financial losses and damaged reputation.
Business Model & Growth
BYJU business model is a hybrid which encompasses:
- Flagship App: Provides individualized learning in a wide range of subjects and grades.
- BYJU Classes: Live online classes and hybrid tuition centers.
- Acquisitions: Has started acquiring other companies such as Epic and Tynker to diversify its educational platform.
- International Presence: It runs its operation in more than 21 countries with an aim of meeting the learning needs of various users.
The initial success of the company was due to the rapid growth and marketing that was aggressive.
Financial Problems and Legal Problems
1. Legal and Financial Difficulties
- App Delisting: In May 2025, BYJU had its Learning App pulled off the Google Play Store because of unpaid Google Web Services (AWS) dues.
- Legal Controversies: Byju Raveendran and the company directors were charged in an FIR filed by the Economic Offences Wing of Mumbai Police over cheating and fraud to the tune of 47 crore rupees.
- US Lawsuit: Creditors filed bankruptcy court suit against the founders of BYJU in a federal court in the U.S. and accused the founders of hiding 533 million in a 2021 loan.
2. Financial Setbacks
- Asset Sales: BYJU sold its U.S. based affiliates, Epic and Tynker, at a huge loss . Epic at 95 million (bought at 500 million) and Tynker at 2.2 million (bought at 200 million).
- Valuation Losses: The valuation of the company dropped to less than 3 billion by 2024 compared to 22 billion in 2022.
3. Strategic Shifts
- Restructuring: BYJU was restructured into three divisions: an online learning app, online classes and tuition centers, and test preparation, with separate leaders overseeing each.
- Role of Founder: Byju Raveendran also became more involved in the day-to-day operations after a series of failures such as loss of investor confidence and a large layoff.
Financial Overview
| Year | Revenue (Rs Crore) | Losses (Rs Crore) | Valuation (USD Billion) |
| 2022 | 3,000 | 500 | 22 |
| 2023 | 2,500 | 700 | 15 |
| 2024 | 1,800 | 900 | 3 |
| 2025 | 1,200 | 1,200 | 1 |
Note: This is an approximate figure and is dependent on the available data.
Key Takeaways
- Rapid Expansion Risks: BYJU is facing difficulties with operations and financial pressure due to its aggressive global expansion strategy.
- Financial Management: Wanton money management practices have led to tremendous losses and court battles.
- Reputation Management: The damaged reputation of the company explains the need to remain open and conduct ethical business operations.
Conclusion
The case of BYJU as a successful edtech startup and its descent into serious financial and legal troubles is a lesson to startups. Although innovation and high-growth rates can make it successful, it should be balanced with a proper financial management system, ethical business, and planning.
Call to Action
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