Unlocking the Truth: Raveendran’s Plea for an Investigation into EY-Glas Trust ‘Collusion’
"I Am the Byju of BYJU’S": Raveendran, CEO of Bankrupt Edtech, Demands Probe
In a dramatic turn of events, the founder and CEO of the bankrupt edtech firm BYJUS, Byju Raveendran, has finally broken his silence, opening up about the company’s downfall and the alleged "collusion" between EY, Glas Trust, and former resolution professional Pankaj Srivastava. In a LinkedIn post, Raveendran stated, "I am the Byju of BYJU’S," highlighting his connection with the company and his commitment to unraveling the truth behind the situation.
A Plea for Transparency: Raveendran’s Emotional Outpouring
With a heavy heart, Raveendran shared a personal account of his journey, acknowledging the sacrifices he made to build BYJUS, but also expressing his disappointment and frustration at the way things fell apart. "I was too busy building my company, and then I was too busy saving everything I built," he wrote. "I have long been wanting to connect with you directly. But I was waiting for justice to be done and truth to prevail. Today, I do not want to wait. Today, I cannot wait."
Unveiling the Culprits: Raveendran’s Accusations
Raveendran’s post has sparked a firestorm of controversy, with many sharing their reactions and concerns on social media. He has targeted EY, Glas Trust, and Srivastava, alleging that there was a "criminal collusion" between them, which led to the downfall of BYJUS. "Me and several employees received a document with conclusive evidence of criminal collusion between EY India, Glas Trust, and the IRP," he claimed. "I am sure a thorough investigation of this evidence will reveal the truth. I request the authorities to take that up immediately," he added.
The Fall of a Visionary: BYJUS’s Rise and Demise
Once hailed as a visionary and the "Elon Musk of Edtech," Raveendran’s BYJUS had soared to unprecedented heights, ranking among the most valuable startups in India. With a focus on making learning more accessible and effective, BYJUS had attracted significant investments, including a $1.1 billion infusion from marquee investors like Sequoia Capital. However, the company’s meteoric rise was short-lived, with the pandemic-driven online education boom turning out to be a double-edged sword. As Raveendran lamented, "During the pandemic, Byju’s aggressively expanded, acquiring companies like Great Learning Pvt. Ltd., Epic! and Aakash Educational Services. By early 2022, the company’s valuation had soared to around $22 billion. However, challenges soon emerged."
Unraveling the Mystery: The US Federal Reserve’s Role
The Federal Reserve’s interest rate hikes have been cited as a key factor in Byju’s demise, with Raveendran himself stating that the US Fed’s actions increased his company’s financing costs, leading to reduced cash flow and ultimately, financial troubles. "The US Federal Reserve’s interest rate hikes increased Byju’s financing costs, while banks that had been providing loans to its customers withdrew their support," he explained. "This cut off a key revenue stream, as customers had relied on those loans to pay for long-term courses."
What’s Next? A Stormy Road Ahead
As the dust settles on this complex saga, many questions remain unanswered. Will Raveendran’s allegations of "collusion" be investigated? Will the authorities take action against EY, Glas Trust, and Srivastava? How will the legal battles play out in the US courts? One thing is certain – this is a story far from over, with more twists and turns ahead. As Raveendran concluded, "I am the Byju of BYJU’S, and I am here now. I will not rest until justice is served."
Timeline of Events
- 2005: Byju Raveendran starts his teaching venture, which later transforms into BYJUS.
- 2021: BYJUS acquires companies like Great Learning Pvt. Ltd., Epic!, and Aakash Educational Services.
- Early 2022: BYJUS’s valuation soars to around $22 billion.
- 2022: The US Federal Reserve’s interest rate hikes increase Byju’s financing costs, leading to reduced cash flow.
- 2023: BYJUS files for bankruptcy in the US, and Raveendran’s management is questioned.
- Mid-2023: Debt holders sue Byju’s Alpha in a Delaware court, seeking control over a subsidiary they believe holds unspent loan proceeds.
- Late 2023: Raveendran breaks his silence, sharing his side of the story and demanding a probe into EY-Glas Trust ‘collusion’.
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