Byju Raveendran, founder and CEO of embattled edtech giant Byju’s, has spoken out about the company’s turbulent journey, acknowledging past mistakes while outlining a vision for the future. Speaking to ANI alongside cofounder Divya Gokulnath, Raveendran defended the company’s actions and criticised what he called a false narrative against Byju’s.
Key takeaways
On the $1.2 billion term loan
Raveendran admitted that taking the $1.2 billion term loan in 2021 was a mistake, particularly given the availability of equity options at the time.
Divya Gokulnath dismissed allegations of fund diversion, asserting that neither she nor Raveendran had access to the supposed $533 million.
Byju’s 3.0: a new beginning
For the first time, Raveendran outlined the next phase, Byju’s 3.0, emphasising a shift from profit-centric strategies to a purpose-driven approach.
Gokulnath also alleged that Raveendran faced a campaign of intimidation, with threats aimed at isolating him by targeting family members, colleagues, and legal counsel.
Key takeaways
On the $1.2 billion term loan
Raveendran admitted that taking the $1.2 billion term loan in 2021 was a mistake, particularly given the availability of equity options at the time.
- Quote: “We shouldn’t have taken this term loan at the time in 2021, when we had enough equity options. We had raised $5 billion before that. It was a collective decision.”
- He alleged that US-based lenders tried to tarnish Byju’s reputation and accused them of attempting to create prejudice in Indian courts by labelling him and his brother as “fugitives.”
- The company defaulted on interest payments and missed reporting obligations tied to the loan, such as timely filing of audited financials.
Divya Gokulnath dismissed allegations of fund diversion, asserting that neither she nor Raveendran had access to the supposed $533 million.
- Quote: “Today, in the US, judgments are passed against us because we don’t have representation… If we were sitting on $533 million, this would not be the situation.”
- Gokulnath emphasised the financial strain they face, including challenges in hiring legal representation.
Byju’s 3.0: a new beginning
For the first time, Raveendran outlined the next phase, Byju’s 3.0, emphasising a shift from profit-centric strategies to a purpose-driven approach.
- He highlighted the potential of AI to enhance teaching without replacing educators.
- Quote: “How do we make it easy and interesting for students? How can we use AI not to replace teachers but to enable them to become better?”
- He stressed that the focus would be on improving learning outcomes, particularly for students in the bottom quartile.
Gokulnath also alleged that Raveendran faced a campaign of intimidation, with threats aimed at isolating him by targeting family members, colleagues, and legal counsel.
