Byju Raveendran Accused of Attempting to Regain Firm Through Alleged Financial Misconduct
Nov 22, 2024:- Once again Baiju Ravindran, the founder and leader of the burgeoning coaching company Byjus is at the peak of controversy. Now he was accused of trying to secretly buy a software company using money borrowed from Americans. Which was acquired by a US trustee.
Byju Raveendran, the founder of Indian edtech giant Byju’s, is facing allegations of financial improprieties in the U.S., with accusations of using hidden funds to regain control of key company assets. Reports suggest that Raveendran attempted to reacquire Epic!, a company Byju had purchased in 2021 but lost amid financial turmoil, by allegedly transferring funds through undisclosed channels to settle discounted debts owed to U.S. creditors.
According to a Delaware lawsuit, Raveendran collaborated with intermediaries to secure distressed loans at heavily reduced prices. The transactions reportedly involved concealed funds transferred through a shell company, raising suspicions of mismanagement and an attempt to bypass creditor claims. The allegations are part of a larger financial crisis for Byju's, which is under simultaneous bankruptcy proceedings in the U.S. and insolvency actions in India.
The situation has further escalated as creditors allege that over $533 million in loan proceeds remain unaccounted for, adding to the mounting scrutiny over Byju’s financial practices. Raveendran has denied wrongdoing and continues to contest the claims in court.
This controversy adds to the growing list of challenges faced by the edtech company, which was once celebrated as a unicorn in the Indian startup ecosystem.
Related reports claim that Rabindran hired a man named William R. Hayler, who is a businessman in Nebraska and previously worked as a political consultant.