The startup ecosystem assesses the ripple impact of the series of challenges faced by the edtech company Byju's.

The crisis at Byju's, India's leading edtech company, has escalated, triggering a battle with investors who had previously invested billions in the firm. The outcome of this struggle is uncertain, but discussions within the startup community are contemplating the potential impact of Byju's troubles on the broader ecosystem. Once hailed as India's most valuable startup, Byju's is grappling with various issues, including a severe cash shortage, delays in financial reporting, and legal conflicts with lenders. In an attempt to address its financial challenges, the company is seeking to raise $200 million through rights issues, valuing the company between $230 million and $250 million post-money – a remarkable 99 percent decrease from its previous valuation.