Qatar sovereign fund asks HC to block Byju founder's personal assets

Qatar Investment Authority invested in edtech company in 2019 and 2022

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Qatar's sovereign wealth fund has petitioned the Karnataka High Court to prevent Byju Raveendran, founder of eponymous edtech firm Byju’s, from selling, pledging, or transferring his assets.

Qatar Investment Authority (QIA), one of the largest foreign investors in India, requested the court to "pass an order of injunction restraining Respondent No. 1 (Byju Raveendran), including his servants, agents, and assigns, from in any manner dealing with, parting with, selling, charging, pledging, transferring, disposing of, alienating, or encumbering, or in any manner creating any right, title, or interest in any of their assets,” reported Mint newspaper, citing court filings.

QIA has reportedly sought to claim Raveendran's personal assets valued up to $235.19 million, seeking relief under Section 9 of the Arbitration and Conciliation Act, 1996. Respondents in the petition include Raveendran and Byju's Investments, which is controlled by the businessman and his family.

QIA invested in Byju’s in 2019 and 2022. In October 2022, Byju's said it had closed a financing round of $250 million from its existing investors, including QIA. The fundraise was executed at its previous valuation of $22 billion.

Byju’s is besieged by myriad challenges, including a severe cash crunch, delays in financial reporting, and a slew of legal disputes with lenders and investors. At least seven vendors have also moved the National Company Law Tribunal (NCLT) against Byju’s to recover dues.

This includes a tussle between Byju’s and its investors at NCLT and its centres around the company’s $200 million rights issue, with allegations of oppression and mismanagement. Investors Prosus, General Atlantic, Sofina, and Peak XV (formerly Sequoia) have sought a stay on the rights issue, challenging the valuation at less than 99 per cent of Byju’s peak valuation of $22 billion.

Earlier this year, US-based lenders initiated corporate insolvency proceedings against the edtech company at the NCLT’s Bengaluru Bench. The ad hoc group of lenders, which extended $1.2 billion in term loans to Byju’s, said that GLAS Trust Company LLC had filed a petition against Byju’s parent Think & Learn.

NCLT recently admitted Byju's, officially known as Think and Learn Pvt Ltd, into the Corporate Insolvency Resolution Process based on a petition filed by the Board of Control for Cricket in India (BCCI) due to unpaid dues amounting to Rs 158.90 crore. Byju’s then moved the National Company Law Appellate Tribunal (NCLAT) against NCLT’s order.

In 2022, Byju’s and QIA partnered to launch a new edtech business and research and development centre in Doha. The centre was expected to drive research and innovation to create cutting-edge learning solutions customised for students in the West Asia and North Africa.