Byju’s $533 Million Funds ‘Round-Tripped’ to CEO, Court Filing Alleges
A Delaware bankruptcy court filing alleges that most of the $533 million missing from Byju’s Alpha was “round-tripped” back to founder Byju Raveendran and his affiliates, contradicting previous claims the funds served “legitimate corporate needs.”
Key Takeaways
- US court alleges $533 million was “round-tripped” to Byju Raveendran
- UK logistics firm OCI Limited implicated in hiding funds from lenders
- Byju’s denies allegations, claims funds benefited parent company
- Company faces multiple litigations over $1.2 billion loan repayment
The Missing Money Trail
According to court documents, the bankrupt Indian edtech firm used UK-based OCI Limited to conceal cash from US lenders. OCI founder Oliver Chapman’s sworn declaration states the majority of funds were transferred to Byju’s Global in Singapore, an entity Raveendran owned individually.
“This demonstrates that Raveendran’s plot was to siphon hundreds of millions of dollars of corporate assets for personal use,” the declaration stated.
The filing alleges former advisor Rupin Banker coordinated with Raveendran to misuse the logistics company, blocking lenders from recovering the money.
Multiple Legal Challenges
Byju’s faces extensive litigation from lenders and investors. Lenders are seeking repayment of the $1.2 billion loan taken in November 2021, while investors including Qatar Investment Authority are seeking details of Raveendran’s personal assets.
US lenders seized control of Byju’s Alpha last year, placing it under Chapter 11 bankruptcy. Three other units were also forced into insolvency under bankruptcy attorney Claudia Springer’s control.
Company’s Strong Denial
Byju’s has categorically denied all allegations, stating in a media release that GLAS Trust was aware the Alpha loan monies “were not used by Byju Raveendran or any Founder of BYJU’s for their personal gain but were used for the benefit of Think & Learn Private Limited.”
The company asserted it holds all rights to take legal action against OCI and its director for damages caused by the allegations.
The case represents one of several major legal challenges facing the once high-flying edtech giant as it navigates financial restructuring and creditor demands.
