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Byju’s founder accused of trying to regain firm with hidden cash

Economic Times

Economic Times · 8m ago

Byju’s founder accused of trying to regain firm with hidden cash

The founder of Byju's, the bankrupt Indian tech firm, allegedly attempted to use hidden loan proceeds to secretly repurchase a software company that was taken over by an American trustee. Byju Raveendran sought to regain control of his struggling education technology empire, according to court documents. He allegedly recruited a former political consultant to buy out US creditors owed over $1.2 billion under a loan, in exchange for ownership of Epic!, an education-software firm. However, the plan failed, and Raveendran has denied any wrongdoing in response to lender allegations.

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Related News

Court official excludes US lenders from Byju’s creditors committee: Report | Mint

Livemint

Livemint · 11m ago

Court official excludes US lenders from Byju’s creditors committee: Report | Mint

US lenders attempting to collect over $1.2 billion from Think & Learn (Byju's) have been removed from the creditors committee overseeing the insolvency case against the Indian education tech company. The lenders accused the interim resolution professional, Pankaj Srivastava, of plotting to reject their claims and manipulating the creditors vote. They argue that Srivastava's actions of stripping them of their claims are unprecedented and illegitimate. The lenders have been trying to force Byju's into an insolvency proceeding in an Indian court for months, with limited success. The case is also being fought in the US, where lenders are trying to locate $533 million allegedly hidden by Byju's founder, Byju Raveendran.

Aakash and Byju’s merger application withdrawn

Thehindubusinessline

Thehindubusinessline · 1y ago

Aakash and Byju’s merger application withdrawn

Think and Learn, the parent company of edtech firm Byju's, and Aakash Educational Services Ltd (AESL) have withdrawn their merger petition. The merger, which was part of a cash-and-stock deal worth $940 million, has hit a roadblock as AESL's founder, the Chaudhry family, refused to complete the share swap due to governance issues. Moreover, Byju's has sent a legal notice to AESL's founders over their alleged resistance to complete the share swap. Byju's is facing a cash crunch and is dealing with an oppression and mismanagement case filed by a group of investors.

Probe finds Byju’s failed investors but didn’t commit fraud

Economic Times

Economic Times · 1y ago

Probe finds Byju’s failed investors but didn’t commit fraud

India's Ministry of Corporate Affairs has cleared online education company Byju's of financial fraud following a year-long investigation. While no evidence of wrongdoing was found, the probe did discover governance shortcomings that contributed to the company's mounting losses. The investigation came after disgruntled investors accused founder Byju Raveendran of mismanagement. The report does not address personal accountability or Raveendran's qualifications. Byju's, valued at $22bn at its peak, has been dealing with a cash crunch and facing multiple legal battles in India and the US.

Good Glamm’s Pay Delay: April Salaries, Layoff Dues on Hold Amid Fund Crunch

OutlookIndia

OutlookIndia · 3m ago

Good Glamm’s Pay Delay: April Salaries, Layoff Dues on Hold Amid Fund Crunch

Good Glamm Group is facing financial challenges, delaying salaries for April and dues for recently laid-off employees. The company, once valued at $1.2 billion, is experiencing severe cash flow issues, prompting layoffs of about 15% of its workforce and potential brand sales. Key leadership exits include co-founder Priyanka Gill and CFO Piyush Kalra, further destabilizing operations. The firm plans restructuring to regain profitability by FY25, amid lost investor confidence and board resignations.

Byju’s content manager, business partner face US court sanctions

Economic Times

Economic Times · 8m ago

Byju’s content manager, business partner face US court sanctions

Byju's chief content officer, Vinay Ravindra, and company ally, Rajendran Vellapalath, could face financial sanctions in the US for their involvement in stripping software, cash, and other assets from businesses under court supervision. Lenders are seeking to liquidate US education software companies that Byju's purchased for $820 million. Ravindra and Vellapalath are accused of taking over cloud-based accounts and draining cash and assets from the companies. Byju's, founded by Byju Raveendran, is undergoing bankruptcy proceedings in India after defaulting on its debt to US lenders. A judge will consider imposing financial penalties on the executives.

Byju’s founder says missing millions went to legitimate purpose

Economic Times

Economic Times · 10m ago

Byju’s founder says missing millions went to legitimate purpose

- Byju Raveendran, the founder of Byju's, denies orchestrating a scheme to fraudulently transfer $533 million away from lenders. - The $1.2 billion loan received by Byju's was intended for international expansion. - Byju's faced a liquidity crunch before seeing returns on strategic investments, leading to the use of the $533 million for a legitimate commercial purpose, according to Raveendran. - Lenders have been trying to track down the money for over a year, with allegations that it was transferred offshore to entities linked to the founder. - Raveendran disputes the claims of fraudulent transfer, stating that the allegations are based on a quote attributed to him by a lender's representative that he never made. - Byju's entered into agreements with OCI Ltd. for procurement services, and when unable to reimburse the owed amount, OCI exercised its right of set-off against the Alpha Funds.

Byju’s founder pledges homes to raise funds for staff salaries

Livemint

Livemint · 1y ago

Byju’s founder pledges homes to raise funds for staff salaries

Byju Raveendran, the founder of Indian edtech giant Byju's, has pledged his home and his family's homes as collateral to raise $12 million and pay salaries to the company's employees amidst a cash crunch. The move comes as Byju's is selling its US-based kids' digital reading platform and facing a legal battle over missed loan payments. Raveendran, who was once worth nearly $5 billion, has also raised personal debts of around $400 million, leaving him cash-strapped. Byju's recently reported narrowed losses and concluded an investigation into its overseas fundraising.

Prosus stake in Byju’s worth zero: HSBC

Economic Times

Economic Times · 1y ago

Prosus stake in Byju’s worth zero: HSBC

HSBC has stated that Prosus' nearly 10% stake in Indian edtech firm Byju's is essentially worthless due to legal battles and a cash crunch. This comes as Byju's controversial $200 million rights issue is being conducted with a 99% discount to its peak valuation, potentially erasing the holdings of investors who don't participate. Additionally, Prosus is involved in a legal battle with Byju's in Karnataka High Court, and Byju's is facing legal troubles in the US over a $1.2 billion loan. The company's operations have also been affected by a lack of funds.

Macquarie slashes Byju’s valuation by 98% after Julius Baer protest

Economic Times

Economic Times · 1y ago

Macquarie slashes Byju’s valuation by 98% after Julius Baer protest

Macquarie Capital, the investment banking unit of Australia's Macquarie Group, is reportedly facing a significant write-down of its stake in Indian edtech startup Byju's. The write-down amounts to around 98% of Macquarie Capital's investment and comes after Swiss bank Julius Baer accused the Australian firm of charging fees based on an overvalued and outdated valuation. Macquarie Capital had initially invested hundreds of millions of dollars in Byju's in 2021. The incident highlights the risk associated with private market valuations and the challenges of accurately assessing the value of privately held companies.

Macquarie Capital Trims Valuation Of BYJU’S By Nearly 98%

Inc42 · 1y ago

Macquarie Capital Trims Valuation Of BYJU’S By Nearly 98%

Macquarie Capital, an Australia-based investment firm, has reduced the valuation of its stake in edtech giant BYJU'S by almost 98%. This translates to $440 million, compared to BYJU'S peak valuation of $22 billion in 2022. The move came after Swiss bank Julius Baer accused Macquarie Capital of charging management fees based on an inflated valuation. Macquarie Capital joins a growing list of investors that have marked down the value of their stakes in BYJU'S. The edtech company has faced several challenges, including a debt crisis, legal cases, and a public feud with investors and lenders.

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