From $1.2 billion term loan to ‘unfinished dream’ — Byju’s CEO Raveendran opens up about mistakes

Distressed ed-tech giant Byju’s founder and chief executive officer (CEO), Byju Raveendran, accepted making some ‘business mistakes’ which landed the company into financial turmoil as the education startup aimed to expand to 21 nations outside India, reported the news agency ANI on Saturday, 17 May 2025.

In an interview with the news agency, Raveendran highlighted how he felt Byju’s was too quick to expand into foreign markets, adding the company could have taken it ‘a little bit slowly.’ 

“When we tried expanding from India to the whole world, We made some business mistakes. Maybe we could have taken it a little bit slowly. We were growing a little too soon, too fast. We went from India to 21 new countries,” said Raveendran, according to ANI.

Liquidity became a big concern for the startup against the backdrop of the raging Russia-Ukraine war and the US Federal Reserve’s interest rate hike, which ‘dried up’ the liquidity in the market.

“($700 million of committed capital – signed committed capital – didn’t turn up,” the founder told the news agency. Since then, Raveendran claimed that they have been struggling with liquidity.

“And from then onwards, and this is early 2022, and it’s almost now three years, we have been struggling for liquidity. But fortunately, we had enough liquidity, which we made, and I have no regrets in terms of putting all that money back,” he said. 

The $1.2 billion loan

Founder Byju Raveendran also acknowledged that one of the firm’s biggest mistakes was taking the $1.2 billion term loan in 2021 despite having enough equity funding options.

“Only mistake if you ask me, which created all this is that we shouldn’t have taken this, when we had enough equity options, we shouldn’t have taken this term loan at that time in 2021. One billion (USD) because it was, like, we had other options. We have raised $5 billion before that. We were not doing it out of desperation. It was all collective decision,” Raveendran told the news agency.

Raveendran’s remarks come amid the ed-tech startup facing financial problems, regulatory issues, and legal battles. 

Threats and legal troubles

While Byju’s was going through the financial and legal battles, Byju Raveendran’s wife, Divya Gokulnath, claimed that they were allegedly facing targeted campaigns of intimidation and pressure tactics to isolate her husband by threatening those close to him, including family members, colleagues, and even legal counsel, reported the news agency.

Gokulnath also acknowledged that she had been threatened over the issue.

“Yes. They are everywhere. They send people who look like goons. They think we will get intimidated. They don’t know what we are made of. They don’t know where we come from,” Raveendran’s wife told ANI. 

Byju’s 3.0

Raveendran also highlighted the company’s focus on ‘purpose over profit’ and said that he will remain focused on students, teachers, and the transformative power of learning.

“About Byju’s 3.0. I am so excited to talk to you about it because we both don’t belong in courtrooms. We belong in classrooms. That’s where we belong. And these classrooms, being based out of India, are our biggest advantage. It’s a country where there is so much respect for teachers, so much respect for learning,” said Raveendran.

Despite the setbacks of the troubled ed-tech startup, Byju Raveendran still remains optimistic and says that it is his responsibility to rebuild the firm.

“The reason why we are not giving up on BYJU’S is because we owe it to the students, teachers, and employees who trusted us,” Raveendran was quoted as saying by ANI.

The Ed-tech giant CEO also shared his and his wife’s love for teaching and called Byju’s an “unfinished” dream for them. 

“I see that even today. My 78-year-old father, when any student asks him something then I can see his eyes lighting up. And that’s true for me and for Divya. Teaching is one of the most satisfying jobs and that’s where it’s an unfinished dream for us,” he told the news agency.