BYJU'S Vs Lenders, New-Age Tech Stocks Rebound & More

Byju Raveendran Bares It All

For the first time since BYJU’S was thrust into turmoil three years ago, cofounder Byju Raveendran has publicly broken his silence on what transpired at the company. From receiving threats to alleging a conspiracy to oust him, he had much to speak about.

Raveendran’s Biggest Regret: In a damning confession, the BYJU’S cofounder conceded that his biggest regret was taking the , despite having sufficient equity funding options. He explained that aggressive hedge funds bought the loan and , which wasn’t due until November 2026.

Allegations Run Amok: Alongside claims of external pressures and internal errors, cofounder Divya Gokulnath also detailed an alleged campaign of intimidation targeting close associates. Both she and Raveendran further asserted that certain lenders orchestrated a malicious media campaign and manipulated legal and administrative channels to seize control of BYJU’S.

Blitzscaling Gone Wrong? During the , Raveendran also indicated that BYJU’S troubles were likely a consequence of the rapid expansion of operations, which overlooked sustainable growth and profitability. In his own words, the edtech startup expanded “too fast” – – driven by a “mandate” from its global investors to grow.

The Inherent Contradiction: While Raveendran had much to say, there is also another side – of investors and creditors – to the story of BYJU’S fall from grace. Over the years, we have seen the edtech platform dodge questions, and evade accountability, all while burning through billions of dollars, laying off thousands and pushing sales teams to sell products at the peril of unsuspecting parents.

Regardless of the challenges, the revelations have put the spotlight back on the Raveendrans’ ambition to reassert control over BYJU’S. While the future is unclear,

From The Editor’s Desk

: The defence tech startup plans to file its DRHP with the SEBI by August to raise INR 800 Cr to INR 1,000 Cr via IPO. Tonbo has appointed IIFL Securities and JM Financial as the book-running lead managers for its public issue.

: The GenAI unicorn has confirmed that one of its engineers, part of the data science team, died by suicide on May 8. This follows a Reddit post, which claimed that the employee was under severe work-related stress at the company.

Indian startups cumulatively raised $151.6 Mn across 24 deals last week, marking a 74% decline from the $587 Mn raised the previous week. Emerging on top, Farmley raised $40 Mn while Complement1 bagged $16 Mn.

: The DailyHunt parent has laid off the employees as part of a broader exercise to spur investments in AI and focus on long-term priorities and growth. This follows Deloitte flagging weaknesses in the company’s internal financial controls in FY24 report.

The two ecommerce platforms have delisted Turkish apparel brands like Trendyol, Koton and LC Waikiki on their websites. This comes after Turkey backed Pakistan during the latter’s standoff with India.

: Foxconn will soon kick off the shipments of iPhones from its new plant in Karnataka. The new facility in Devanahalli is touted to be the company’s second biggest factory in the world and will have a capacity of manufacturing 2 Cr iPhones annually.

: All 33 new-age tech stocks under Inc42’s coverage ended last week with substantial gains in the range of 0.83% to nearly 35%. TAC Security and ideaForge were the biggest gainers, soaring 34.86% and 21%, respectively, last week.

: The Centre has received 506 proposals in total from startups and other entities to build an indigenous foundational AI model. Last month, SarvamAI was selected from the first pool of applicants to build the country’s first sovereign LLM.

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