Gaurav Munjal, Co-founder and CEO of Unacademy, took to X (formerly Twitter) to offer his perspective on the struggles faced by fellow edtech company Byju’s. He attributed Byju’s setbacks to the leadership style of its founder, Byju Raveendran, suggesting that Raveendran’s isolation and unwillingness to listen to advice played a significant role in the company’s current state.
Munjal stated, “Byju failed because he didn’t listen to anyone. He put himself on a pedestal and stopped listening. Don’t do that. Never do that. Don’t listen to everyone but have people who can give you blunt feedback.” He emphasized the importance of seeking constructive criticism and acting on it, even if it is not always comfortable.
Before offering his critique of Byju’s, Munjal shared some key learnings from his own journey in the past two years. He highlighted the crucial importance of understanding unit economics from day one, emphasizing that this understanding is essential for long-term success. He also stressed the importance of identifying valuable investors and recognizing those who might be liabilities, suggesting that it is crucial to cultivate relationships with those who provide insightful guidance.
Meanwhile, global investment giant Prosus has announced a significant write-off of its investment in Byju’s, recording a loss of $493 million. In its annual report for FY24, Prosus stated that the decrease in value for equity investors led to the write-off of its 9.6% effective interest in Byju’s. This announcement highlights the challenges faced by Byju’s, as investors are reassessing their positions in the company.
Munjal’s criticism and Prosus’s write-off serve as stark reminders of the importance of sound leadership, financial prudence, and the need to seek valuable guidance in the business world. As Byju’s navigates its current challenges, the company’s future success hinges on its ability to address these critical areas.
