The dramatic decline of Byju Raveendran: from founding the most valued business in India to having no net worth at all!

According to the most recent Forbes Billionaire Index 2024, Byju Raveendran, the founder of Byju’s, a well-known edtech business in India, has suffered a serious blow as his net worth has completely evaporated. According to the report, his net worth has decreased to zero from Rs 17,545 crore ($2.1 billion)! Raveendran was once a major force in the business world, and his demise is similar to the difficulties his once-booming enterprise faced.

According to an ET article, Byju’s, which was founded in 2011, became the most valuable company in India very rapidly, reaching a peak value of $22 billion in 2022.

The company’s instructional software, which served students at different levels, revolutionised the learning environment. But subsequent financial scandals and revelations have damaged its reputation and reduced its worth.
When Byju’s revealed a significant net loss of more than $1 billion for the fiscal year that ended in March 2022, it was clear that the company was having financial difficulties. Due to its poor performance, big investor BlackRock sharply reduced its value, bringing it down to barely $1 billion—a small portion of its peak worth.

Due to difficulties, Byju’s investors, who include Prosus NV and Peak XV Partners, decided to dismiss Raveendran from his position as CEO. This action raises questions about the company’s future course. Its problems were made worse when Byju’s was investigated for possible Foreign Exchange Management Act breaches.
Byju’s started a reorganisation drive in October 2023 to improve cash flow, reduce expenses, and simplify operations as a means of addressing its financial problems. More than 500 workers were laid off as a consequence of this reorganisation, and further layoffs are anticipated as a result of delayed salary payments.
With whom have the other billionaires lost their prized tags?
With a total net worth of $14.2 trillion, a record 2,781 billionaires were included on Forbes’ 2024 World’s Billionaires list. But compared to the prior year, the fortunes of 25% of billionaires declined, with 189 people losing their billionaire designation as their net worth dropped below $1 billion.
The fall in billionaires, mostly from China, is a reflection of issues like limited foreign investment, sluggish economic development, oversaturation in the real estate market, and elevated geopolitical tensions. 133 billionaires, including those from Macau and Hong Kong, left the list in China. Tang Binsen, the creator of the Chi Forest sparkling water firm, Hui Ka Yan, the head of Evergrande Group, and Wang Wenyin, whose shares in Amer International Group were frozen, are among the notable individuals impacted. As a result, Wang Wenyin’s net worth dropped significantly, from $19 billion to less than $800 million.
By comparison, the country with the highest number of billionaires—the United States—saw just eight people fall off the list, followed by Japan (six) and Russia (five). Osman Kibar of BioSplice Therapeutics, Gary Lauder of Estée Lauder, and Luc Tack of Tessenderlo were among those who lost their billionaire title.

Notwithstanding the general rise in the number of billionaires, difficulties in many industries and geographical areas led to notable changes in the rankings, which had an effect on the wealth of many people.
With net worths as of March 8, 2024, the following well-known individuals lost their billionaire status in the previous year:
Wang Wenyin’s net worth has decreased from $19 billion to less than $800 million.
Net worth of René Benko: $0 (formerly $6 billion)
Hui Ka Yan’s net worth has decreased from $3 billion to around $700 million.
Osman Kibar’s net worth has decreased from $1.7 billion to around $750 million.
Gary Lauder’s net worth has decreased from $1.3 billion to around $960 million.
Luc Tack’s net worth has decreased from $1.2 billion to less than $900 million.
Ryan Breslow’s net worth has decreased from $1.1 billion to less than $100 million.