The crises involving Byju’s and Paytm deal a serious blow to India’s once-thriving tech industry.

The crises involving Byju's and Paytm deal a serious blow to India's once-thriving tech industry.

The once-most valuable company in India, Byju’s, is currently having difficulties. The Indian edtech business is facing a number of issues, such as suspected mismanagement and accounting irregularities, and its valuation has dropped from $22 billion to $1 billion.

During the epidemic, when regular schools were closed, investors spent billions of dollars in this unproductive corporation that provides everything from analog coaching to online lectures.

According to Bloomberg on July 11, the Indian government allegedly requested an investigation into Byju’s finances and accounting procedures, putting the company under investigation.

“I believe that the developments surrounding Byju’s will leave a lasting scar on the industry because people will no longer see that as a singular issue. According to Bhavish Sood, general partner of the Indian venture capital firm Modulor Capital and a former research director of the consulting firm Gartner, “they will view it as a larger edtech viability problem.”

Overvalued assessments

The Indian digital revolution gained momentum due to the COVID-19 pandemic.

Tech companies reported a spike in demand for their goods and services, from online shopping to online meal delivery and education.

According to India’s Economic Survey for 2021–2022, the government acknowledged more than 14,000 new businesses in 2021, up from just 733 between 2016 and 2017.

As a result, according to the report, India has grown to become the third-largest startup environment globally, behind the United States and China.

Leave a Reply