Raveendran’s Net Worth Wipes Out (Image Source: PTI)
Forbes announced its highly anticipated World’s Billionaires list for 2024, revealing a record-breaking number of billionaires worldwide, totaling 2,781 individuals with a combined net worth of USD 14.2 trillion. However, amid this prosperity, a significant portion of billionaires experienced a decline in their fortunes compared to the previous year.
According to Forbes, approximately one-quarter of those listed saw a decrease in their net worth, with 189 individuals falling below the coveted USD 1 billion threshold and losing their status as billionaires altogether.
Among the notable drop-offs from the billionaire club were prominent figures associated with renowned brands. This includes Gary Lauder, an heir to the Estée Lauder fortune, Hajime Satomi, the former CEO of Japanese gaming giant Sega Sammy, and David Tran, the owner of the company behind Sriracha hot sauce.
The majority of the losses were observed in China, where economic challenges such as slower growth, a property market surplus, reduced foreign investment, and escalating geopolitical tensions contributed to the decline in wealth among billionaires.
One significant example of a billionaire facing setbacks is Byju Raveendran, the founder of the popular learning app Byju’s, once hailed as India’s most valuable startup. Raveendran co-founded Byju’s in 2011 and oversaw its expansion through acquisitions of other education startups.
However, Byju’s encountered significant financial hurdles, including a staggering net loss exceeding USD 1 billion for the fiscal year ending March 2022. Moreover, the firm’s valuation plummeted from USD 22 billion in 2022 to approximately USD 1 billion after BlackRock slashed its valuation amid capital procurement challenges and allegations of accounting irregularities. According to the Forbes, net worth of Byju Raveendran: USD 0 (down from USD 2.1 billion)
In February, Byju’s shareholders voted to remove Raveendran as CEO, further exacerbating the company’s troubles. Despite raising funds through a rights issue, Byju’s remains unable to process employee salaries due to constraints on fund utilization imposed by regulatory authorities.
In an internal memo, Raveendran attributed the salary delay to certain investors and clarified that the funds raised through the rights issue are held in a separate account, as directed by the National Company Law Tribunal (NCLT) in a February 27 order.
