When star startups fall: It takes extraordinary skills to build a market leader like Byju’s or Theranos or China Evergrande or Paytm or WeWork. But perhaps these companies became victims of their founders’ success and the adulation they received.
Byju’s investors called an extraordinary general meeting (EGM) after the startup announced a plan to raise Rs 1662 crore after losing Rs 180806 crore valuation by way of a rights issue to all its equity shareholders.
IIM graduate Karan Bajaj sold WhiteHat Jr. to Byju’s for Rs 2223 crore in 2020. Once valued at Rs 182884 crore, Byju’s drastically lost its valuation over the years and it is now planning to raise funds at a drastic valuation cut of around Rs 2078 crore.