The Ambush of Private Equity

Yes, you heard it correctly: private equity is not an achievement, but rather a haunting specter for your future. Investors focus on their exit strategy through revenue, often disregarding the company’s profit or loss.

But who bears the loss? Of course, it’s the company. Let’s consider the case of one startup: Byju.

At one point, Byju’s valuation reached Rs. 1 Lakh Crore. However, it is now valued at only Rs. 200 Crore. Investors pressured Byju to increase revenue, resulting in a jump from Rs. 2200 Crore to Rs. 5000 Crore in one year. Unfortunately, this rapid growth also led to increased losses parallelly, and investors are now critical of the company.

"Byju's consolidated net losses surged 81% to Rs. 8245.00 Crore in FY2022 from Rs. 4564.00 Crore in FY 2021" - by The Times of India.

Today’s Scenario: Byju, once a sensation in the education sector, is now facing bankruptcy.

Byju is in the business since 2007, or even before, and the company was profitable during those years. Perhaps he would have fared better if they had focused on fundamental business principles or pursued organic growth. Many of us are familiar with Byju Sir, the popular tutor who taught in stadiums.

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