Is Byju's on the decline? Investor uncertainty casts a shadow over the future of the EdTech pioneer.

Byju's, once a prominent figure in India's thriving EdTech sector, is now experiencing a significant decline. The company's valuation has plummeted from its peak of $22 billion due to a complex mix of legal challenges, financial difficulties, and investor dissatisfaction.

Byju's troubles began with a failed attempt to go public in early 2022, shattering their hopes of achieving a $40 billion valuation. Shortly afterward, BlackRock dealt a major blow by slashing Byju's valuation to just $1 billion.

The financial woes have recently deepened. Byju's had to sell a $200 million rights issue at a 99 percent discount, raising serious concerns about its fundamental value. Additionally, a legal dispute with the National Company Law Tribunal (NCLT) led to most of the funds raised being placed in escrow.

In response to growing issues, Byju's has implemented significant cost-cutting measures. The company drastically reduced the fixed salaries of new sales employees by 90 percent, tying almost their entire compensation to performance. Leadership issues have also come to the forefront, highlighted by the resignation of Byju's CEO in India.

The edtech pioneer faces a challenging path ahead, with additional legal troubles looming in the US.