According to the most recent Forbes Billionaire Index 2024, Byju Raveendran, the founder of Byju’s, a well-known edtech company 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 report, Byju’s, which was founded in 2011, became the most valuable startup in India very quickly, reaching a peak valuation of $22 billion in 2022.
The company’s instructional software, which served students at different levels, revolutionized the learning environment. But recent 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 subpar performance, big investor BlackRock sharply reduced its valuation, 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 regarding the company’s future course. Its problems were made worse when Byju’s was investigated for possible Foreign Exchange Management Act violations.
Byju’s started a reorganization drive in October 2023 to improve cash flow, reduce expenses, and streamline operations as a means of addressing its financial problems. More than 500 workers were laid off as a result of this reorganization, and more layoffs are anticipated as a result of delayed salary payments.
With whom have the other billionaires lost their prized tag?
With a combined net worth of $14.2 trillion, a record 2,781 billionaires were listed 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 including 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 company, Hui Ka Yan, the chair 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 only eight people fall off the list, trailed 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: