Byju's CEO Raveendran defends startup strain, says "toxic work culture can cause PTSD, but it can also lead to post-traumatic growth"

ANI "I'll never sell anything which I won't give to my son": BYJU'S founder Raveendran
Toxic work culture can cause PTSD, but for those who are mission-driven, it can also lead to 'post-traumatic growth,' said Byju Raveendran, founder and CEO of edtech firm BYJU'S. In his first extended public remarks since the company entered crisis, Raveendran defended his role, rejected accusations of wrongdoing, and introduced 'Byju's 3.0'—a vision that returns focus to teachers and students.Speaking to ANI, Raveendran explained why he refused to walk away when the company was on the brink. 'A good teacher will never leave students halfway,' he said. 'The teacher in me stood up, and we didn't shut down the businesses. We had to complete the course.' Despite a storm of legal and financial troubles, he said the team kept operations alive because of a shared commitment to education.
Once valued at $22 billion, Byju's is now mired in lawsuits and cash flow challenges. The most serious charge is a $533 million fund transfer linked to its US financing arm, Byju's Alpha. Raveendran, along with his wife Divya Gokulnath and former executive Anita Kishore, is accused of diverting the loan amount. Raveendran dismissed the allegations, saying, 'They are clearly telling there is no fraud, but they are trying to make it look like there is... The goal is to create a narrative that suits their interests.'
He alleged that Glas Trust, the lender's trustee, is part of a wider campaign to discredit him and the company. 'These are narratives that they have created in trying to take control of the company,' he said. 'Unfortunately, in a company that is built on the founder's name... if you tarnish the founder's name, it'll have a huge impact on the company's valuation.' Clarifying the nature of the Enforcement Directorate's (ED) inquiry, Raveendran stressed that there is no case against him personally. 'It was on the Think & Learn transactions... there was never a PMLA. There was never a chargesheet. There were summons, I went and met, we cooperated. Investigation is closed,' he told ANI.
He also addressed reports about a lookout circular, saying, 'If ED puts out a lookout notice, they will never make that public because that defeats the purpose... it was never personal.'Raveendran claimed that a handful of US-based hedge funds and lenders exploited the situation. 'I'm not blaming all our investors. But there are a few rotten apples... a couple of US-based lenders. They've made more money than anyone could have imagined from Byju's,' he said.He referred to them as 'vulture lenders' and accused them of derailing his long-term goal of creating a million teaching jobs in India. 'It's not a conspiracy by many. It's literally two hedge funds—some Americans and a few Indians based in the US,' he said.Byju's faced a major liquidity crunch after failing to secure $700 million in committed funding. Raveendran attributed the shortfall to global economic shocks but acknowledged some internal errors too.Reflecting on a key decision, he said, 'That was the only mistake. We shouldn't have taken that term loan when we had enough equity options.' The company had already raised $5 billion before taking the $1 billion loan in 2021. 'It wasn't out of desperation. It was a collective decision—but in hindsight, we shouldn't have taken that loan,' he admitted.Raveendran rejected the idea that he had benefited personally from the company's rise. 'I never saw the money come. I never saw it go. We invested everything we had in one mission—Byju's,' he said. 'We have no other investments. My entire investment is in Byju's.'His wife, Divya Gokulnath, echoed this sentiment. 'If I have a circle of 10 people, Byju has a circle of 5. We don't go out, we don't party, we don't network. For us, it's always been about the company and our family,' she said. 'We don't own any luxury cars. We don't own any luxury homes… It's always been about what we can do for our country.'Byju's expanded rapidly during the pandemic, riding a wave of investor enthusiasm. But that pace may have come at a cost. '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,' Raveendran said. He added that investor pressure was a key factor. 'We have 160 world-class investors. All of them—this was the mandate: grow, grow, grow and change the way kids learn.'Now, he hopes to rebuild from a more grounded place. 'Why shouldn't I fight to protect what I've built over the last 20 years, what we've built together with 85,000 employees?' he asked. 'When we make a comeback, it will be on the same mission—but we will be more flexible in how we operate. We've learned a lot of lessons along the way.'Looking ahead, Raveendran said Byju's 3.0 will focus on simplifying and enriching learning with the help of technology. 'How do we make it easy and interesting for students? How can we use AI not to replace teachers but to enable teachers to become better teachers?' he asked.The founder closed with a reminder of where the company began: in a classroom. 'We don't belong in courtrooms, we belong in classrooms. That's where we belong,' he said. 'And these classrooms, being based out of India, are our biggest advantage.'

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

13 minutes ago

• Time of India

Investors brace for oil price spike, rush to havens after US bombs Iran nuclear sites

A US attack on Iranian nuclear sites could push oil prices even higher and trigger a knee-jerk rush to safety, investors said, as they assessed how the latest escalation of tensions would ripple through the global economy. The reaction in Middle East stock markets , which trade on Sunday, suggested investors were assuming a benign outcome, even as Iran intensified its missile attacks on Israel in response to the sudden, deep US involvement in the conflict. US President Donald Trump called the attack "a spectacular military success" in a televised address to the nation and said Iran's "key nuclear enrichment facilities have been completely and totally obliterated". He said the US military could go after other targets in Iran if the country did not agree to peace. Iran said it reserves all options to defend itself, and warned of "everlasting consequences". Speaking in Istanbul, Iran's Foreign Minister Abbas Araqchi said Tehran was weighing its options for retaliation and would consider diplomacy only after carrying out its response. Investors said they expected US involvement would cause a stock market selloff and a possible bid for the dollar and other safe-haven assets when major markets reopen, but also said much uncertainty remained. "I think the markets are going to be initially alarmed, and I think oil will open higher," said Mark Spindel, chief investment officer at Potomac River Capital. "We don't have any damage assessment and that will take some time. Even though (Trump) has described this as 'done', we're engaged," Spindel said. "I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil," he added. One indicator of how markets will react in the coming week was the price of ether, the second-largest cryptocurrency and a gauge of retail investor sentiment. Ether was down 8.5 per cent on Sunday, taking losses since the first Israeli strikes on Iran on June 13 to 13 per cent. Most Gulf stock markets, however, seemed unconcerned by the early morning attacks, with the main indexes in Qatar, Saudi Arabia and Kuwait up slightly or flat. Israel's Tel Aviv main index was at an all-time high. Oil prices, inflation A key concern for markets centers around the potential impact of Middle East developments on oil prices and thus on inflation. Rising inflation could dampen consumer confidence and lessen the chance of near-term interest rate cuts. Saul Kavonic, a senior energy analyst at equity research firm MST Marquee in Sydney, said Iran could respond by targeting American interests in the Middle East, including Gulf oil infrastructure in places such as Iraq or harassing ship passages through the Strait of Hormuz. The Strait of Hormuz lies between Oman and Iran and is the primary export route for oil producers such as Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. "Much depends on how Iran responds in the coming hours and days, but this could set us on a path towards $100 oil if Iran respond as they have previously threatened to," Kavonic said. While global benchmark Brent crude futures have risen as much as 18 per cent since June 10, hitting a near five-month high of $79.04 on Thursday, the S&P 500 has been little changed, following an initial drop when Israel launched its attacks on Iran on June 13. Jamie Cox, managing partner at Harris Financial Group, said oil prices would likely spike before leveling off in a few days as the attacks could lead Iran to seek a peace deal with Israel and the United States. "With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal," Cox said. Economists warn that a dramatic rise in oil prices could damage a global economy already strained by Trump's tariffs. Still, any pullback in equities might be fleeting, history suggests. During past eruptions of Middle East tensions, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead. On average, the S&P 500 slipped 0.3 per cent in the three weeks following the start of conflict, but was 2.3 per cent higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro. Dollar woes An escalation in the conflict could have mixed implications for the US dollar, which has tumbled this year amid worries over diminished US exceptionalism. In the event of US direct engagement in the Iran-Israel war, the dollar could initially benefit from a safety bid, analysts said. "Do we see a flight to safety? That would signal yields going lower and the dollar getting stronger," said Steve Sosnick, chief market strategist at IBKR in Greenwich, Connecticut. "It's hard to imagine stocks not reacting negatively and the question is how much." Jack McIntyre, portfolio manager for global fixed income at Brandywine Global Investment Management in Philadelphia, said it was uncertain whether US Treasuries would rally after the US attack, largely due to the market's hypersensitivity to inflation. "This could lead to regime change (which) ultimately could have a much bigger impact on the global economy if Iran shifts towards a more friendly, open economic regime," said McIntyre.

Business Standard

20 minutes ago

• Business Standard

Apple eyes Perplexity acquisition? What's at stake for Google, Samsung

Apple is reportedly exploring a potential acquisition of Perplexity AI, the US-based AI start-up. According to a recent Bloomberg report, Apple executives, including mergers and acquisitions head Adrian Perica, services chief Eddy Cue, and key decision-makers in AI, have held internal discussions about making a bid for the company. While there has been no confirmation from Apple, Perplexity told Bloomberg, 'We have no knowledge of any current or future M&A discussions involving Perplexity.' If Apple proceeds, the deal could give it a much-needed boost in AI talent, an established brand in the generative AI space, and a consumer-facing product. However, ongoing deals between Perplexity and other tech companies, notably Samsung and Motorola, could complicate the process. Bloomberg also reported that Meta attempted to buy Perplexity earlier this year. Here's a breakdown of what an Apple-Perplexity deal could mean for the companies involved: What Apple stands to gain from the Perplexity AI acquisition? A Perplexity acquisition would support Apple's efforts to develop its own AI-based search engine, a strategic move amid growing uncertainty around its lucrative deal with Google. Bloomberg reported that Apple currently earns an estimated $20 billion a year by making Google the default search engine in Safari, but that agreement is under scrutiny from US antitrust regulators. The potential acquisition also reflects Apple's wider push to catch up in the generative AI race. Despite unveiling its Apple Intelligence platform at WWDC 2024, the company remains behind competitors in core features. Siri's planned upgrade was even delayed earlier this year, with a revised rollout now targeted for next spring. By bringing Perplexity in-house, Apple would not only gain a robust AI product but also absorb a skilled team already working at the forefront of AI-powered search. The acquisition could further accelerate the development of next-gen Apple Intelligence capabilities. Samsung and Motorola partnerships at risk? Bloomberg previously reported that Samsung Electronics is close to finalising a major partnership with Perplexity. This would include preloading Perplexity's assistant and app onto Samsung devices and integrating its search technology into Samsung's native web browser. Talks have also involved incorporating Perplexity into Samsung's own voice assistant, Bixby. Samsung is reportedly aiming to announce these integrations as early as this year, potentially making Perplexity a default assistant option on its upcoming Galaxy S26 series. The South Korean giant is also expected to be a major participant in Perplexity's next funding round. Motorola already has an active partnership with Perplexity. On select Motorola smartphones, including the Edge 60 Pro, users can choose between Perplexity AI, Google Gemini, and Microsoft Copilot as their default assistant. While there is no indication yet that these partnerships are under threat, they could present a hurdle if Apple moves ahead with an acquisition. Bloomberg also noted that Apple is weighing an alternative: partnering with Perplexity rather than acquiring it outright. Such a deal would involve integrating Perplexity's AI search into Safari and possibly into Siri as an additional intelligence layer. What Apple Perplexity AI Deal could mean for Google An Apple-Perplexity alliance, whether through acquisition or partnership, would be a clear challenge to Google's dominance on iOS devices. For now, Google Search remains the default on Safari, but a Perplexity-powered alternative could alter the balance of power, particularly if antitrust regulators force changes to the current arrangement. Separately, Perplexity's growing relationship with Samsung is another potential concern for Google. Although Google's Gemini AI is already integrated into Samsung's Galaxy devices, including being set as the default assistant, Samsung's collaboration with Perplexity suggests a shift toward diversifying its AI offerings. If Samsung deepens its partnership with Perplexity, it could mark a strategic move away from sole reliance on Google and toward supporting a broader AI ecosystem.

Mint

22 minutes ago

• Mint

India may cut duties on US shrimp imports

NEW DELHI : India may lower duties on shrimp imports to support reciprocal trade alignment in its trade agreement with the US, according to two people close to the discussions. The commerce ministry is closely monitoring the US Department of Commerce's actions on countervailing duty (CVD) and anti-dumping duty (ADD) on shrimp imports from India, the officials said on the condition of anonymity. India is keeping a 'close watch" on these developments and may consider recalibrating its own duties on shrimp imports if the US undertakes a revision, especially as the two nations work to resolve trade irritants and harmonize tariff frameworks under the Bilateral Trade Agreement (BTA), the first official said. Also Read: Mint Exclusive: India-US trade deal before 8 July, talks next week Such a move, the second official suggested, would demonstrate India's commitment to fair trade practices and its willingness to align with a key trading partner, provided domestic interests, particularly those of the shrimp farming and processing industry, are safeguarded. Any adjustment on India's part would also take into account global price trends and the competitive landscape in key markets like the US, Japan, and the EU. However, if the deal is signed in time, these duties will be recalibrated according to the mutually agreed-upon terms. Also Read: India, US lay foundation for trade give-and-take Queries sent to the commerce ministry remained unanswered until press time. India's seafood exports Shrimp is one of India's top seafood exports, with the US being its largest market. At present, Indian shrimp exports to the US face an effective customs duty of 17.7%, including 5.77% CVD and 1.8% ADD, and a 10% baseline tariff imposed by the US on 2 April. In exchange, India levies a 30% duty on US-origin Vannamei shrimp, also known as Pacific white shrimp. Competing countries, on the other hand, face significantly higher duties. For instance, Ecuador is subject to a CVD of 7.55%, while Vietnam faces a CVD of 2.84%. Although Vietnam's CVD is lower than India's, it is now also facing a preliminary anti-dumping duty of 35%, imposed in June 2025. Similarly, Thailand's CP Foods (Charoen Pokphand Foods PCL), one of the world's largest producers of feed and shrimp, has been hit with a preliminary ADD of 57.6%. In 2024-25, India exported marine products worth over $6 billion, with frozen shrimp accounting for a major share, according to data from the Marine Products Export Development Authority (MPEDA). In comparison, India imported seafood worth $13.76 million from the US in 2023-24, according to the commerce ministry. Also Read: Will India press for an early harvest in trade talks with US? 'The lowering of tariffs, especially CVD and ADD, would give a fillip to Indian shrimp exports. We hope the government will take up the issue during bilateral talks," said Pawan Kumar G., president, Seafood Exporters Association of India. Window of opportunity With the BTA negotiations entering a crucial phase, trade analysts see this as an opportunity for both sides to make coordinated changes that reduce trade friction. The 10% base tariff and the proposed additional 16% reciprocal tariff are expected to severely impact India's seafood exports to the US, as these products account for nearly a third of India's global seafood exports. India is projected to suffer a 20.2% decline, amounting to a $404.3 million loss, especially as Canadian seafood continues to enjoy duty-free access under the USMCA trade pact, said a report by the Global Trade Research Initiative (GTRI). Processed meat and fish exports are also expected to be hit hard, with estimated losses of $83.1 million, or 14.2%, as tariffs rise from 2.6% to 31.2%, the report added.