Byju’s Founder to Appeal After U.S. Court Orders Him to Pay Over $1B
A U.S. bankruptcy court in Delaware has issued a default judgment ordering Byju Raveendran — co-founder and CEO of Indian ed-tech company Byju’s — to personally pay more than $1.07 billion.
The court found that Raveendran repeatedly ignored discovery orders, failed to appear for hearings, and gave “evasive, incomplete” responses about how $533 million in “Alpha” funds were used.
Why the Judgment Was Issued
Creditors led by GLAS Trust brought the case after alleging Byju’s U.S.-based wing diverted over $533 million from a $1.2 billion loan.
The judgment also includes another $540.6 million tied to a limited-partnership stake in a hedge fund called Camshaft Capital.
Judge Brendan Shannon described the judgment as “extraordinary” and said the circumstances were unlike any other case he had seen.
Raveendran’s Response: Fighting Back
Raveendran and his legal team strongly rejected the court’s ruling. They argue that the court rushed to judgment without giving him a fair chance to defend himself.
J. Michael McNutt, litigation advisor for Raveendran, said the court “ignored relevant facts” and plans to file an appeal and other legal challenges.
He also claims that GLAS Trust misled the court about how the funds were used — saying they were not diverted for personal gain but used within Think & Learn, Byju’s parent company.
Broader Implications
- This marks a dramatic fall for Raveendran: Byju’s was once valued at $22 billion and backed by major global investors.
- If the judgment stands, it could accelerate Byju’s unraveling, as creditors seek to recover their funds not just from the company but from Raveendran personally.
- Raveendran’s appeal could lead to a prolonged legal battle across multiple jurisdictions; he and his team are reportedly considering claims against GLAS Trust in other countries.
