Byju Raveendran, the founder and CEO of the bankrupt edtech firm Byju’s, finally broke his silence, sharing an emotional post on LinkedIn. Beginning with the statement, “I am the Byju of BYJU’S,” he detailed what went wrong and how the situation is being misrepresented. He said that he will now connect directly with the public, revealing that he has sold everything he owns “to keep his mission alive”.
Raveendran also called for a “thorough investigation” into alleged collusion and fraud involving the firm’s lender Glas Trust, consultancy firm EY, and former resolution professional Pankaj Srivastava.
“I am the Byju of BYJU’S, and I am here now. I should have been here sooner. But I was too busy building my company. Then I was too busy saving everything I built. I have long been wanting to connect with you directly. But I was waiting for justice to be done and truth to prevail. Today, I do not want to wait. Today, I cannot wait,” he wrote on LinkedIn.
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His statement follows a viral LinkedIn post by a whistleblower from EY India, which alleged that the audit firm worked with Glas Trust and was appointed by Srivastava to advise him on Byju’s insolvency proceedings.
“Me and several employees received a document with conclusive evidence of criminal collusion between EY India, which I otherwise held in high regard, Glas Trust, which claims to represent the lenders it does not represent, and the IRP (resolution professional Srivastava) who was appointed by an Indian court to protect Byju’s but ended up destroying it,” Raveendran wrote. “I am sure a thorough investigation of this evidence will reveal the truth. I request the authorities to take that up immediately,” he added.
Last month, the former resolution professional of insolvency-bound Byju’s, Pankaj Srivastava, approached the National Company Law Appellate Tribunal (NCLAT), challenging the disciplinary action recommended against him by the Bengaluru bench of the NCLT.
Additionally, Byju’s former promoters and Byju Raveendran’s brother, Riju Raveendran, have also moved the NCLAT against the NCLT’s order reinstating Glas Trust and Aditya Birla Finance in the edtech firm’s Committee of Creditors (CoC).
On January 29, the National Company Law Tribunal (NCLT) directed disciplinary proceedings against Byju’s resolution professional and overturned his decision to exclude Glas Trust and Aditya Birla Finance from the CoC.
Raveendran’s full post here:
However, Raveendran’s wife and Byju’s co-founder, Divya Gokulnath, claimed in another LinkedIn post, “Byju’s post and account were taken down. Investigating why. But no problem. Here we go again :)”
Byju Raveendran’s rise and fall
Byju Raveendran became a prominent figure in India’s push to establish itself as a tech hub, securing investments from global firms such as Sequoia Capital and Mark Zuckerberg’s Chan Zuckerberg Initiative.
A teacher and engineer from Kerala, Raveendran started tutoring students in Bengaluru in 2005. His classes grew rapidly, attracting such large crowds that he eventually held sessions in stadiums to accommodate thousands of students.
He later transformed his venture into a digital platform, launching a self-learning app focused on subjects like math, science, and English.
During the pandemic-driven boom in online education, Byju’s aggressively expanded, acquiring companies like Great Learning Pvt. Ltd., Epic!, and Aakash Educational Services in 2021. By early 2022, the company’s valuation had soared to around $22 billion.
However, challenges soon emerged. According to a Bloomberg report, the US Federal Reserve’s interest rate hikes increased Byju’s financing costs, while banks that had been providing loans to its customers withdrew their support. This cut off a key revenue stream, as customers had relied on those loans to pay for long-term courses. By late 2022, delayed financial disclosures raised concerns among lenders, prompting negotiations to avoid a default on Byju’s US-issued debt.
In mid-2023, the issue escalated to a Delaware court, where debt holders sued Byju’s Alpha, seeking control over a subsidiary they believed held unspent loan proceeds. Byju’s stopped making interest payments and accused creditors, including Redwood Capital Management, of fabricating a crisis.
The legal battles, including two US bankruptcy cases, resulted in significant setbacks for Byju’s and cast doubt on Raveendran’s management of the company.
(With inputs from PTI, Bloomberg)
