Byju Raveendran, the founder of the Indian ed-tech company Byju’s, has strongly criticized a US bankruptcy court’s order that requires him to pay more than one point zero seven billion dollars. He denies any wrongdoing and has accused the lenders of misleading the court. Raveendran has vowed to appeal the ruling, which represents a dramatic fall for a man once celebrated as a symbol of India’s startup success.
The Delaware bankruptcy judge issued a default judgment after finding that Raveendran had repeatedly ignored court orders. The judge noted that Raveendran provided evasive and incomplete responses concerning approximately five hundred thirty-three million dollars that Byju’s US unit allegedly transferred in 2022 and never recovered. The judge also cited issues with a separate limited-partnership stake later valued at roughly five hundred forty point six million dollars. The November 20 ruling comes from legal action by lenders trying to recover funds connected to a one point two billion dollar term loan they provided to the ed-tech startup in 2021.
Earlier this year, in April, a group of US lenders led by GLAS Trust sued Raveendran and his wife, Byju’s co-founder Divya Gokulnath, over the missing five hundred thirty-three million dollars in loan proceeds. The couple denied any misconduct at that time and accused the lenders of attempting a hostile takeover of the company. They later stated their intention to pursue a two point five billion dollar lawsuit against GLAS Trust and others in India and other jurisdictions, though no such legal filing has yet been made public. This was in addition to a separate complaint Byju’s filed in the New York Supreme Court in 2023, challenging the acceleration of the term loan.
The court’s latest order followed a September 29 hearing on the default request, where the judge cited a months-long pattern of noncompliance. The judge noted that Raveendran skipped hearings, missed extended deadlines, and ignored a prior contempt order that imposed ten thousand dollars in daily sanctions, which remain unpaid.
US Bankruptcy Judge Brendan Shannon described the relief granted in the case as extraordinary. He stated that the circumstances of this case are unique and unlike anything he had encountered before, making such relief richly warranted. The judge has given the parties seven days to respond to the ruling.
A representative for Raveendran said they consider that the US court erred in its judgment and will be filing necessary appeals and other contestations. The counsel argued that the court ignored relevant facts and issued the judgment without giving Raveendran an opportunity to present a defense, relying instead on an earlier contempt order. They also contended that the ruling failed to acknowledge that GLAS Trust was aware the Alpha loan funds were not used for the personal benefit of Raveendran or other founders, but rather for Think & Learn, the startup’s parent company.
The counsel said Byju’s founders are preparing claims against GLAS Trust and others in multiple jurisdictions. These claims are expected to seek at least two point five billion dollars in damages and, barring a settlement, are expected to be filed before the end of 2025.
Nonetheless, the default judgment marks a stunning fall for Raveendran and his company, which was once India’s most valuable startup with a twenty-two billion dollar valuation. The company was backed by global investors such as Tiger Global, the Chan Zuckerberg Initiative, and Prosus. Byju’s is now entangled in numerous lawsuits, funding droughts, mass layoffs, and a battle for control as lenders and creditors try to recover their investments.
Raveendran had previously challenged the Delaware court’s jurisdiction, but the judge rejected that argument. The judge wrote that Raveendran’s conduct related to the litigation involves his activities in the United States, including fundraising and serving as a director, officer, or manager of a US corporation.
Earlier this week, a filing in the Delaware bankruptcy case alleged that most of the five hundred thirty-three million dollars missing from Byju’s US unit, Alpha, was round-tripped back to Byju Raveendran and his associates. In response, Raveendran denied this allegation, stating the funds were not used for personal gain.
Meanwhile in India, Byju’s is undergoing a court-supervised sale process after insolvency proceedings began last year. Early bidders for the company include Manipal Education and Medical Group and Ronnie Screwvala’s UpGrad.