Byju Raveendran, the founder and CEO of Byju’s, has finally spoken out. In an emotional LinkedIn post, he defended himself and shared his side of the story. He began with, “I am the Byju of BYJU’S”, and explained how things went wrong. He claimed the situation was being misrepresented and revealed that he sold all his personal assets “to keep his mission alive.”
Calls for an Investigation
Raveendran demanded a “thorough investigation” into alleged wrongdoing by Glas Trust, consulting firm EY, and former resolution professional Pankaj Srivastava. He accused them of fraud and collusion in Byju’s insolvency process.
In his post, he wrote, “I am the Byju of BYJU’S, and I am here now. I should have been here sooner. But I was too busy building my company. Then I was too busy saving everything I built. I have long been wanting to connect with you directly. But I was waiting for justice to be done and truth to prevail. Today, I do not want to wait. Today, I cannot wait.”
His statement came after a whistleblower from EY India posted on LinkedIn. The whistleblower accused EY of working with Glas Trust and Srivastava to take control of Byju’s.
Raveendran further alleged, “Me and several employees received a document with conclusive evidence of criminal collusion between EY India, which I otherwise held in high regard, Glas Trust, which claims to represent the lenders it does not represent, and the IRP (resolution professional Srivastava) who was appointed by an Indian court to protect Byju’s but ended up destroying it.”
He urged authorities to act quickly, saying, “I am sure a thorough investigation of this evidence will reveal the truth. I request the authorities to take that up immediately.”
Legal Battles Intensify
Byju’s insolvency has triggered multiple legal disputes. Last month, Srivastava approached the National Company Law Appellate Tribunal (NCLAT) to challenge the disciplinary action recommended against him by the Bengaluru bench of the National Company Law Tribunal (NCLT).
Meanwhile, Raveendran’s brother, Riju Raveendran, and other former promoters also moved the NCLAT. They opposed an NCLT ruling that reinstated Glas Trust and Aditya Birla Finance in the company’s Committee of Creditors (CoC).
On January 29, the NCLT overturned Srivastava’s decision to exclude Glas Trust and Aditya Birla Finance from the CoC. The tribunal also ordered disciplinary proceedings against him.
Byju’s LinkedIn Post Removed
Shortly after Raveendran’s statement, his LinkedIn account was taken down. His wife and Byju’s co-founder, Divya Gokulnath, reacted by posting, “Byju’s post and account were taken down. Investigating why. But no problem. Here we go again :)”
Rise and Fall of Byju’s
Raveendran was once a leading figure in India’s edtech boom. He secured investments from global firms, including Sequoia Capital and Mark Zuckerberg’s Chan Zuckerberg Initiative.
His journey began in 2005 when he started tutoring students in Bengaluru. His classes became so popular that he had to conduct them in stadiums to accommodate large crowds. Eventually, he turned his venture into a digital platform, focusing on math, science, and English.
During the pandemic, Byju’s expanded aggressively. The company acquired Great Learning, Epic!, and Aakash Educational Services in 2021. By early 2022, its valuation had skyrocketed to $22 billion.
Financial Crisis and Bankruptcy
However, financial troubles soon followed. A Bloomberg report revealed that rising US Federal Reserve interest rates increased Byju’s borrowing costs. At the same time, banks that had been financing customer loans withdrew their support. Since many students relied on these loans to pay for long-term courses, Byju’s lost a crucial revenue stream.
By late 2022, delays in financial disclosures alarmed lenders. The company entered negotiations to avoid defaulting on its US-issued debt. The situation worsened in mid-2023 when creditors sued Byju’s Alpha in a Delaware court. They sought control over a subsidiary that allegedly held unspent loan funds.
In response, Byju’s stopped making interest payments and accused creditors, including Redwood Capital Management, of fabricating a crisis.
Ongoing Legal Battles
The legal struggles have severely impacted Byju’s. The company now faces two US bankruptcy cases and multiple lawsuits in India. These setbacks have also raised serious doubts about Raveendran’s leadership.
