Byjus was once valued at 22 billion dollars — the most valuable startup in Indian history. In 2026, it is a cautionary tale. How did Indias poster child for edtech go from unicorn to crisis? Here is a factual timeline.
The Rise (2011-2021)
Byju Raveendran started with classroom coaching in Bengaluru. The app launched in 2015 and found product-market fit almost immediately. During COVID-19 lockdowns (2020-2021), growth exploded. Byjus acquired WhiteHat Jr for 300 million dollars, Aakash Institute for nearly 1 billion dollars, and Great Learning for 600 million dollars. Funding rounds valued the company at 22 billion dollars.
The Cracks (2022-2023)
Post-COVID, online learning demand normalized. But Byjus had built its cost structure for hypergrowth. Aggressive sales practices drew criticism — reports of sales teams pressuring parents, selling expensive courses to low-income families on EMI, and misleading refund policies surfaced.
Financial audits were delayed repeatedly. Deloitte resigned as auditor. Board members including Prosus representatives quit. Revenue numbers, when finally revealed, showed losses of Rs 8,245 crores in FY22.
The Fall (2024-2025)
Mass layoffs began — over 10,000 employees let go across 2023-2024. The 1.2 billion dollar term loan from international lenders became a legal battle. NCLT proceedings were initiated. Multiple lawsuits across jurisdictions.
The brand that parents once trusted became synonymous with aggressive sales tactics and financial mismanagement.
Lessons for the Indian Startup Ecosystem
- Growth without profitability has limits. Acquiring companies at premium valuations when your core business is not profitable is a recipe for disaster.
- Sales practices matter. Short-term revenue from aggressive selling destroys long-term brand trust.
- Corporate governance is not optional. Delayed audits and board conflicts are red flags that investors should not ignore.
- The product was genuinely good. The tragedy of Byjus is that the core learning product was valuable. Millions of students benefited. The business model and execution failed, not the educational content.
The Current State
As of early 2026, Byjus is undergoing restructuring. The outcome remains uncertain. The app still works, some courses are still available, but the company is a shadow of its former self. For parents considering Byjus courses, the advice is simple: proceed with caution and never commit to long-term EMI-based plans.
— 7Review Editorial Team
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