The founder of edtech giant Byju’s, Byju Raveendran, is facing restrictions on international travel, with the Enforcement Directorate imposing a ban amid a severe shareholder dispute. The central agency has issued a lookout circular against Raveendran, halting his ability to leave the country as the company grapples with significant challenges. The move comes as Byju’s contends with a tumultuous period, marked by substantial losses, a drastic dip in valuation, and strained financial relations.
Reports indicate that the Enforcement Directorate initially issued a lookout circular on intimation, signaling that immigration authorities would notify relevant officials of any foreign trips by Raveendran. However, the latest development signifies a more stringent measure where he can be prevented from departing the country altogether.
Byju’s, once esteemed and valued at over $20 billion, now finds itself reeling from profound setbacks. The firm, widely regarded as a trailblazer in India’s startup landscape, saw its fortunes plummet last year, enduring staggering losses and experiencing a staggering 90% drop in its valuation. The ramifications of this fall from grace reverberated through the company, leading to the exit of key investors and the resignation of its auditor, Deloitte.
Furthermore, the edtech platform embroiled itself in a legal wrangle with lenders in the United States over a substantial $1.2 billion loan, underscoring the depth of its financial challenges. As pressures mount from all corners, the company faces a critical juncture in its trajectory, with its very existence called into question amid the fallout from the shareholder dispute and ongoing legal entanglements.
The internal strife at Byju’s has climaxed with the extraordinary general meeting (EGM), where select investors have tabled a resolution to depose Raveendran and his family, citing alleged mismanagement as the impetus behind this aggressive move. The ensuing escalation has led to a standoff, with the company denouncing the EGM as “procedurally invalid” and invoking contractual clauses to challenge the legitimacy of the investors’ actions.
As the valuation of the once-venerated edtech company continues to spiral downward, and its financial woes compound, the imposition of restrictions on the founder’s international travel marks a pivotal moment in Byju’s turbulent journey. With the fates of Raveendran and the company irrevocably intertwined, the outcome of this dispute and the company’s ability to navigate its multifaceted challenges will determine the future trajectory of this erstwhile symbol of aspiration and innovation in India’s startup landscape.
