📉 The Fall of an Edtech Giant: The Byju’s Scam Controversy Explained
“From being a $22 billion unicorn to a company plagued by allegations—what went wrong at Byju’s?”
Just a few years ago, Byju’s was the poster child of India’s booming edtech revolution. It was everywhere—on cricket jerseys, prime-time TV, YouTube ads, and billboards. Parents were convinced. Investors were all in. And students across India logged in by the millions.
But in 2024 and now deep into 2025, the once-glorious startup has become the subject of multiple controversies, scam allegations, legal action, and an overall public trust meltdown.
Let’s break down what’s really happening with Byju’s—from its rise to what many are now calling a massive scam.
📚 How Byju’s Became a Household Name
Founded in 2011 by Byju Raveendran, the platform started with live classes and quickly scaled into app-based learning, targeting school students and competitive exams like JEE, NEET, CAT, and IAS.
In no time:
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Byju’s became a unicorn (a startup valued at over $1 billion)
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It was valued at $22 billion by 2022
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Celebrities like Shah Rukh Khan endorsed it
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It acquired companies globally like Aakash, WhiteHat Jr, and Osmo
But behind this meteoric rise, things weren’t all as perfect as they seemed.
🚨 Allegations of Scams, Mismanagement & Deception
1. Predatory Sales Tactics
The most widely criticized practice was pressuring middle-class families into expensive subscription plans.
Sales agents were accused of:
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Pushing ₹1.5 to ₹3 lakh courses to families who couldn’t afford them
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Misleading about refund policies
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Locking in parents via EMIs and loans, sometimes without their full knowledge
📌 Several parents reported that refunds were never processed, even when they canceled within the promised “15-day no questions asked” period.
2. Unapproved Loans in Students’ Names
Some complaints reached regulatory authorities, claiming unauthorized loans were sanctioned under parents’ or students’ names through third-party NBFCs, often without informed consent.
In many cases:
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Families discovered loans only when repayment reminders came
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Byju’s customer support failed to resolve these disputes
This raised serious ethical and legal red flags.
3. Cooking the Books?
Byju’s delayed releasing financial statements for over 18 months, a major red flag for investors.
When they finally released FY21 results:
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Reported ₹4,588 crore in losses
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Revenue fell 90% compared to internal projections
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Auditors flagged questionable accounting practices
This sparked concern that numbers were manipulated to impress investors, which bordered on financial fraud.
4. Mass Layoffs & Employee Harassment
Despite raising billions, Byju’s laid off over 5,000 employees in waves from 2022–2024.
Employees complained about:
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Abrupt terminations
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No severance pay
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Toxic work culture and daily sales pressure
Some even filed cases with labor courts for unlawful terminations.
5. Global Lawsuits & Investor Exodus
In 2023–2025, Byju’s faced:
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A lawsuit from U.S.-based lenders over a $1.2 billion loan default
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Deloitte resigned as auditor citing non-cooperation
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Major investors like Peak XV Partners, Prosus, and Chan Zuckerberg Initiative either wrote off their investments or stepped down from the board
📌 Prosus publicly stated that “Byju’s management routinely ignored advice and withheld information.”
That’s not just bad governance—it’s possible investor fraud.
💥 Collapse of Acquisitions
Byju’s spent nearly $2.5 billion on acquisitions—including WhiteHat Jr, Aakash Institute, Epic, and Toppr.
But most of these deals:
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Failed to deliver returns
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Were mismanaged post-acquisition
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Were written off or shut down
WhiteHat Jr, once valued at $300M, was quietly shut down in 2023 after allegations of:
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Fake coding success stories
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Inexperienced teachers
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Aggressive upselling of packages to kids
👨👩👧👦 The Real Victims? Students & Parents
While founders and VCs debated valuation, students and families bore the brunt:
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Parents stuck with loans for services they didn’t use
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Children felt demotivated or overwhelmed by unqualified mentors
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Many families lost trust in online learning altogether
“We trusted Byju’s with our child’s future. But they treated us like a number on a sales sheet,” said one father from Mumbai, still fighting for a ₹95,000 refund.
⚖️ Legal and Government Action
The government has taken note:
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Consumer Affairs Ministry issued notices
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ED (Enforcement Directorate) conducted raids at Byju’s offices in 2023
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Multiple FIRs were filed against the company for financial fraud
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The National Commission for Protection of Child Rights (NCPCR) called out Byju’s for exploiting minors through unethical ads and loans
It’s a full-blown legal crisis now.
📉 What About Byju Raveendran?
The founder, once hailed as a genius entrepreneur, is now under intense scrutiny.
He:
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Was removed as CEO by the board in early 2025
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Was reportedly summoned by ED
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Still claims the company will bounce back
But with no sign of investor trust returning, his credibility has taken a massive hit.
🔍 Is This the End of Byju’s?
Not necessarily. The core product still has value, especially for K–12 students. Aakash Institute remains functional (for now), and millions of users still use the app.
But without:
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Trust
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Transparency
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Ethical business practices
…it’s unlikely the company can recover its brand, even if operations continue.
🧠 Lessons for India’s EdTech Ecosystem
The Byju’s fiasco has become a cautionary tale for startups and investors:
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Growth at all costs is not sustainable
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Ethical sales must be non-negotiable, especially in education
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Investor money can’t replace product quality
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Transparency with users and regulators is key to survival
Startups in the education space must now work harder to build trust, not just valuations.
BYJU RAVEENDRAN THE GUY WHO SCAMMED PARENTS AND STUDENTS BY USING THE NAME OF EDUCATION.