A Reddit community has named Byju Raveendran, the CEO of Byju's, the "worst" Indian founder. It cites allegations of a toxic work culture, unethical business practices, and a negative impact on the Indian startup ecosystem.
The co-founder and CEO of Byju's is facing multiple legal and financial challenges, including allegations of illegally transferring $533 million to offshore accounts associated with him. However, he denies these accusations.
Byju's, an ed-tech platform founded by the embattled CEO, has defaulted on substantial debt payments in the US and India, leading to insolvency proceedings. The company has been forced to lay off many employees, has unpaid salaries, and has experienced a substantial drop in its valuation.
The Worst Indian Founder: A Reddit Poll
The Reddit community Startup India has been conducting a poll to rank Indian startup founders. So far, the results have determined the most underrated, overrated, best, and worst founders.
Reddit users unanimously chosen Byju Raveendran, 44, as the worst Indian founder, citing his mistreatment of employees, customers, and investors. "He scams families of their savings under the pretext of education," wrote one Reddit user.
"He screwed everyone whom he hired... he spoiled Indian startup reputation abroad," said another. "He is greedy and followed stupid practices to sell his product. (Many parents were stuck in debt and cried)," a third Reddit user pointed out.
A Reddit user compiled a lengthy list of Raveendran's shortcomings, including a toxic work culture with employee exploitation, a lack of transparency in corporate governance, and a failure to disclose critical information about operations.
In a significant setback for Byju's in 2023, three key investors—Prosus, Peak XV Partners, and the Chan Zuckerberg Initiative—resigned from the company's board. According to Raveendran, this made it impossible for Byju's to secure new funding.
During a virtual press conference, Byju Raveendran expressed optimism about a turnaround for Byju's but admitted that the company's current valuation is zero. Investors like Prosus have written off their investment in the once highly valued Indian startup.
"When the US lenders called a default and filed in the Delaware court, within two weeks, all three directors resigned. Those three board members resigning together..is what made it almost impossible for us to do any more fundraising or equity raising," Raveendran told reporters at a press conference.
"Even if they wanted to resign, if a transition or a vote for reconstitution had been planned, the company wouldn't be in the situation it is today," he added.
Although Raveendran was ultimately chosen as the worst Indian founder, the competition was close with Bhavish Aggarwal of Ola, who has recently been under fire for providing poor service to Ola Electric customers.
Sridhar Vembu: A Model Entrepreneur
Reddit users also crowned Sridhar Vembu of Zoho as the best Indian founder, citing his role in creating jobs in his hometown, launching a successful product, and developing an impressive business model.
"He created a company in his village providing so many jobs to people in his hometown. Although Zoho pays less compared to the industry standards, still their products are great," a Reddit user noted.
"Undoubtedly Vembu. He operates from a village in Tamil Nadu. He scaled it to a global level and is now giving tough competition to Google and Microsoft. He made his startup unicorn without even taking VC funding," another said.
