The founder of India's ed-tech company Byju's is confronting significant challenges as the startup collapses.

Byju Raveendran, an Indian mathematics prodigy who rose from teaching to becoming a startup billionaire, is now facing a significant challenge as his education-technology company, Byju's, collapses. Once valued at $22 billion by global investors, the company's valuation has plummeted to below $2 billion. Last week, Raveendran lost control of Byju's when a tribunal initiated an insolvency process due to allegations of "financial mismanagement and compliance issues."

The tribunal suspended Byju's board after the company failed to pay $19 million in sponsorship dues to India's cricket federation, requiring Raveendran to report to a court-appointed restructuring expert. An appeals tribunal is set to determine whether to overturn the insolvency process, with Raveendran arguing that the company is solvent and that insolvency could result in the loss of 27,000 jobs, including those of teachers. The potential insolvency also threatens the interests of Byju's investors, such as Dutch technology investor Prosus.

Raveendran denies any wrongdoing or mismanagement. The company has recently faced lawsuits over unpaid loans and public disputes with foreign investors. Despite his passionate and goal-oriented reputation, Raveendran has been described by former colleagues as having an "abrasive approach" in crises, leading to a "trust deficit."