“Byju failed because he didn’t listen to anyone”: Unacademy CEO Gaurav Munjal

In a series of tweets, Unacademy CEO Gaurav Munjal recently shared his thoughts on Twitter (a.k.a. X) highlighting the factors contributing to Byju’s downfall. His insights offer valuable lessons for entrepreneurs on the importance of humility, accepting sound advice, and maintaining financial discipline.

Munjal’s critique of Byju Raveendran, Byju’s founder, focused on his leadership style. He 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.”

Munjal emphasized the need for leaders to remain open to feedback, adding, “Don’t listen to everyone but have people who can give you blunt feedback.”

The Unacademy CEO went on to share lessons from his recent experiences, as he stressed the importance of understanding unit economics from the start and highlighted the varying impact of investors, noting that some are assets while others are liabilities. He advised entrepreneurs to identify and listen to truly beneficial investors.

Byju’s journey from a $22 billion valuation to its current struggles serves as a cautionary tale in the edtech sector. The company’s aggressive expansion and acquisitions reportedly masked underlying financial and strategic issues.

Recent developments include an ongoing investigation by the Ministry of Corporate Affairs (MCA) into allegations of financial misconduct at Byju’s. Despite media reports suggesting the company had been cleared, the MCA clarified on June 26 that the investigation is still in progress and no conclusions have been reached.

Once a prominent player in the edtech industry, Byju’s is embattled as its valuation has plunged and Byju Raveendran’s own net worth, which was pegged at ₹ 17,545 crore ($2.1 billion) as recently as a year ago, has plummeted to zero as per the recently released Forbes Billionaire Index 2024.

But there is perhaps some solace for Byju’s after all, as Gaurav Munjal closed out his tweets by reminding us that there are no shortcuts to building a business, and that there are “some rules you cannot defy”, while imploring us to not give up.

In that kernel of wisdom, is a takeaway for all of us.