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In a recent media call, Byju Raveendran, the founder of the beleaguered edtech company Byju’s, expressed his commitment to repaying all outstanding debts to lenders, provided they are willing to collaborate with him. Raveendran’s remarks come as the company faces ongoing insolvency proceedings triggered by a dispute with the Board of Control for Cricket in India (BCCI) over unpaid dues.
During the two-and-a-half-hour session, Raveendran stated, “If they are willing to work with me, I am willing to give them money back before I take a single rupee out.” He emphasized that lenders would not see any repayments if the insolvency process continues. He revealed that while the company had already paid $140 million, lenders were demanding the full $1.2 billion committed prior to the current financial turmoil. “There is no way we could have given them back for a long time,” he added, noting that while most lenders were open to settlement, a few sought to profit from the situation.
Currently, Byju’s is embroiled in legal disputes, primarily stemming from a claim by US lenders through their agent, Glas Trust, which accused the company of defaulting on its Term Loan B (TLB). The initial insolvency proceedings were initiated after BCCI approached the National Company Law Appellate Tribunal (NCLAT) to recover ₹158.9 crore. Following the payment of these dues, the NCLAT had revoked the insolvency proceedings. However, the US lenders contested this decision in the Supreme Court, leading to the restoration of the insolvency process.
The company, which has raised a $1.2 billion TLB through its holding company, Byju’s Alpha, now faces claims of $1.5 billion from its US lenders in Indian courts. Raveendran clarified that no funds from US lenders had been funneled into India due to regulatory permissions required from the Reserve Bank of India.
He criticized certain aggressive lenders who initiated legal action against the company, stating, “They don’t care about stakeholders in the business as it is their business model to make money out of distress.” Raveendran defended the company’s past decisions, asserting that all deals and acquisitions were sanctioned by the Byju’s board, which included prominent investors.
In June 2023, board members from leading firms, including Peak XV Partners (formerly Sequoia Capital India), Prosus, and the Chan Zuckerberg Initiative, resigned amid the legal challenges posed by Glas Trust. Raveendran noted that while management changes have occurred, five out of six owners of Byju’s remain committed to the firm.
Despite the current struggles, Raveendran remains optimistic about Byju’s future, stating, “At a consolidated level, we will have more than ₹5,000 crore in revenue. We are struggling in the core business which has become zero. Still, there are 200 million kids who come to our platform every month. We have to revamp and revive.”
He concluded with a personal note, affirming his dedication to education: “Whatever may be the result of litigation, I will continue to teach, and nobody could stop me from teaching students.”
Sources By Agencies
