India’s edtech juggernaut Byju’s appears to be in serious trouble. Ever since its meteoric rise in mid-2020, I have, like others who have more than a passing interest in India’s education space, been stunned by the developments.
Each time, the company seemed to reach astronomical heights, its purported valuation broke every ceiling. It raised and spent vast amounts of money, including buying up little fish it felt some affinity towards. Along the way, as the Byju’s phenomenon gained momentum, investors and lenders appeared to jump in some kind of frenzy, possibly more out of a Fear Of Missing Out (FOMO) than their own firm conviction.
Last week, however, brought in so much bad news, that many analysts, observers, and experts in the sector declared that this was the beginning of the end for the darling of edtech. Three board members resigned as did its auditor, Deloitte and Haskins. A government probe had begun, which struck me as business as usual: the government can always be relied upon as a late or even one of the last entrants to any ongoing party.
There have been layoffs, valuation drops, and trouble with its lenders, all within a span of a few months. When it rains, it pours.