 "Education tech company Byju's alleges 'corporate raid' by debt buyers")
Byju Raveendran on Tuesday claimed his startup Byju’s had no loans due till 2026 and the firm was paying interests when debt buyers triggered a “hostile takeover” through bankruptcy proceedings, and purchased distressed loans at deep discounts to seize control of his once $22 billion firm.
“This was not a routine insolvency. This was a corporate raid. A hostile takeover bid by opportunistic secondary debt buyers, masquerading as lenders, trying to double their money by destroying a company,” said Raveendran.
He claimed the creditors triggered bankruptcy over what he called a “technical default” related to delayed audit filings by Think & Learn Pvt -- Byju’s parent company. His statement came as the embattled firm marked one year since the start of insolvency proceedings against the country’s once most valued startup.
Raveendran also said he and his family injected over $800 million of personal funds to keep the company operating.
He announced plans to seek $2.5 billion in damages against what he characterised as “financial predators” who destroyed value at the expense of 85,000 employees and 250 million students.
“What happened to Byju’s can happen to anyone building something valuable,” he said.
“This is not just about me. It’s about the 85,000 people who once worked at Byju’s, the 250 million students who learn with us, and the idea that entrepreneurs should not be bullied into submission by financial predators,” the Byju’s founder said.
Some claims have already been filed in Indian courts against Glas Trust, a former subsidiary that now seeks control over parts of the business.
There is a battle with US lenders who are demanding $1 billion in unpaid dues, triggering the firm’s insolvency. The worth of once most-valued Indian startup is zero now.
“The so-called lenders bought the loan at deep discounts in the secondary market. The credit agreement explicitly disqualified such distressed asset funds from asserting control. Yet, through collusion and procedural manipulation, they seized control of Byju’s US subsidiary and unleashed chaos,” he said.
Earlier, in response to a query from Business Standard, Glas Trust said, “Byju Raveendran’s latest act of threatening defamation claims against Glas Trust and the Term Loan B lenders is a transparent attempt to distract from the facts, coming on the heels of a US federal court holding him in contempt.”