Indian edtech giant Byju’s was once a shining star in the startup galaxy. However, it plummeted to earth with a resounding thud. A recent research note from HSBC reveals that company was valued at $22 billion when it was at its peak. Now, it is worth nothing. The dramatic decline marks one of the most spectacular falls in the world of startup in recent years.
Byju’s downfall is a reminder of volatile nature of startups. The company had once positioned itself as the future of education. It was at a peak then and expanded beyond India. Now, it is facing an uncertain future.
However, Byju’s is not the only startup facing such challenges. AI-driven mortgage startup LoanSnap lately raised $100 million and later found itself embroiled in lawsuits as well as financial troubles. It has evicted its main office amid claims face from creditors. Employees are in fear of layoffs.
All these highlight a troubling pattern in the startup world. First, rapid rise is witnessed and thereafter equally rapid fall. Quick success and massive valuations often masks underlying issues and sometimes lead to catastrophic outcomes.
The situation is further being seen as complicated due to the ongoing battle for diversity and inclusion within the startup. Court lately ruled appeals that venture capital firm supporting Black women business owners, Fearless Fund, cannot issue grants to these entrepreneurs. The decision has sparked outrage among advocates for diversity. It is being seen as a significant setback. Fight for equitable access to funding and opportunities is being hindered.
The narratives paints a grim picture as companies like Byju’s and LoanSnap are struggling to stay afloat amidst financial and legal troubles while efforts to promote diversity and inclusion are being thwarted by legal challenges.
