Byju's Founder Vows Full Repayment to U.S. Lenders Amid Legal Tangles

Apr, 1 2025

Byju's Founder Promises Repayment Amid Ongoing Legal Battles

In a bold statement, Byju Raveendran, the founder of Byju's, has proposed to repay the entire $1.2 billion Term Loan B before seeking any personal funds. This generous offer comes in the wake of legal disputes involving U.S.-based lenders. The loan, initially secured by Byju's Alpha, a holding entity in the U.S., from institutional investors, has become the center of a heated legal scuffle.

Raveendran has accused lenders, notably Glas Trust, of exploiting the company's current financial predicaments. He argues that the lenders would end up with nothing if the insolvency proceedings continue unabated, suggesting these proceedings are more about pressuring the company than recovering funds. This perspective arose after Glas Trust legal challenged previously settled dues, leading to the reinstatement of insolvency proceedings against Think & Learn, Byju’s parent company.

Challenges Against Byju's and Its Response

The journey towards resolution has been tumultuous. Originally, the insolvency was triggered by dues to the BCCI amounting to ₹158.9 crore, but these were eventually settled. However, Glas Trust's actions in the Supreme Court have reintroduced financial instability. Now, lenders are claiming upwards of $1.5 billion when interest is considered, maintaining that repayment is obligatory even as insolvency lingers.

Amidst these claims, Raveendran stands firm, deeming the accusations of fund misuse baseless and ensuring that no money was shifted to India without the Reserve Bank of India's approval. Additionally, stakeholders have felt the repercussions of this financial struggle. The departures of board members from heavy-hitting investments such as Sequoia Capital India, Prosus, and the Chan Zuckerberg Initiative followed the legal actions initiated by Glas Trust.

Despite the setbacks, Byju’s isn’t faltering in its mission. A subsidiary of the main company marked a commendable ₹5,000 crore in revenue and is attracting 200 million monthly users. Raveendran's vision to rejuvenate the company seems undeterred, as he plans substantial reorganization to enhance core operations and continue his dedication to the teaching industry.