Byju’s, a leading ed-tech startup from India, suffers the most blow from the crowd, losing a total of $20 billion in a few incidents. The company, which was hailed to be the most valuable startup in India, was ruined not only by accusations of accounting irregularities but also by purported malpractices and reduced demand for online learning.

Valuation Crashes Amidst Fears of Investors

Byju’s, currently worth $22 billion in the stock exchange in 2022, has counted an unfortunate 95% as investors cut down their stock posted in multiple rounds. This excessive reduction followed the recent decision of the global financial services company BlackRock to cut its holding in Byju's, and as a result, the company was valued at $1 billion again, as per media reports.

Governance Matters as well as the Management Changes

The firm was hit by more hurdles as the majority shareholders presented their discontent toward the founder and CEO of the company Byju Raveendran supported the move to eject him. Shareholders without exception, through the adoption of resolutions, have brought to attention problems of governance, money manipulation, and compliance in the company. Society’s impetus for change is strongly reflected in its listed grievances. Nonetheless, Byju’s scorned the resolutions, pointing out to the low turnout and opposing the validity of the special general meeting.

Challenges and Financial Strain

Also, Byju’s troubles run deeper as reports on the financial burden that the company is carrying emerged e.g., problems relating to loan repayment of $1.2 billion and payment of staff salaries. The corporation declared that it would be issuing the shares worth $200 million and it would be through the right of purchase by the stakeholders and the issue would be aimed at resolving the delicate current liabilities and operating cost. Moreover, the alphabet unit of Byju's in the US, Alpha, has also initiated the Chapter 11 proceedings, hence compounding the woes of the company.

Of the greatest worrying valuation loss and current challenges experienced by Byju's, this showed the fact that the startup economy is not stable and that corporate governance and financial issues must be addressed for the investor’s confidence and sustainability of the company.