The Insolvency Crisis: BYJU’s Founder Escalates Public Attack, Calls Out “Corporate Raid”

Exactly one year since Think & Learn Pvt.—the operating entity of India’s flagship edtech company BYJU’s—entered insolvency proceedings, founder Byju Raveendran stepped up his public rhetoric. In a rare and searing LinkedIn post dated July 29, 2025, he accused a group of secondary debt buyers of orchestrating what he calls a “hostile takeover”—not due to financial distress, but under the guise of a “technical default” triggered by audit filing delays.

While Raveendran has occasionally commented on the unfolding crisis before, this latest message marks one of his strongest and most pointed public counterattacks yet.

BYJU Speaks: “Not Financial Default, But a Corporate Raid”

Raveendran’s core claim is that the insolvency filing was not rooted in genuine financial incapacity. Instead, he describes it as a technical default—a procedural lapse in audit filings that created an entry point for opportunistic debt buyers.

“This was not a routine insolvency. This was a corporate raid. A hostile takeover bid by opportunistic secondary debt buyers, masquerading as lenders…” he wrote.

According to him, these debt investors purchased the distressed loans at steep discounts on the secondary market. Despite being disqualified under the original credit agreement from asserting control, they “colluded” and manipulated procedures to seize control of BYJU’s US subsidiary, launching what he characterizes as a calculated dismantling of the company’s structure.

Founder Pumps in $800 Million, Demands $2.5 Billion in Damages

Raveendran stresses that despite the legal and operational turmoil, he and his family have invested over $800 million of personal funds to keep the business afloat. Far from relinquishing control, he’s now escalating the dispute into a major lawsuit.

He is pursuing $2.5 billion in damages, accusing these creditors—whom he refers to as “financial predators”—of intentionally eroding the value of the company and jeopardizing the futures of 250 million students and 85,000 employees that depend on BYJU’s global product reach.

A High-Stakes Legal Showdown in Two Jurisdictions

At the heart of the controversy is a $1.2 billion fundraising round via BYJU’S Alpha, a US-based special purpose vehicle. Lenders have accused BYJU’s founders of siphoning off $533 million, claims which BYJU’s has vehemently rejected, instead producing a counterclaim for $2.5 billion—alleging defamation, breach of trust, and wrongful seizure.

In India:

The case is playing out in the Supreme Court, where the founders are contesting the removal of Glas Trust from the Committee of Creditors overseeing insolvency. It’s also the stage for their $2.5 billion damages suit, raising serious questions about governance, creditor rights, and the procedural integrity of India’s insolvency resolution mechanism.

In the United States:

BYJU’s Alpha Inc filed for Chapter 11 bankruptcy protection in January 2024. Since then, Delaware’s US Bankruptcy Court has taken punitive steps, including $10,000 daily contempt fines against BYJU’s director Riju Ravindran, over alleged non-cooperation and fraudulent transfers. In June 2025, assets such as Epic! and Tynker were forced into distress sales.

From Edtech Unicorn to Litigation Quagmire

Once valued at around $22 billion, BYJU’s was lauded as India’s edtech success story—known for celebrity endorsements, sports team sponsorships, and ambitions of global dominance. Today, its global footprint is overshadowed by legal entanglements, governance questions, and financial distress.

Raveendran’s message shifts the conversation: from a narrative of mismanagement to one of potential corporate sabotage. Whether the public and the courts side with his version of events—or side with the lenders—remains uncertain. But one thing is clear: the BYJU’s saga is evolving into a defining moment for India’s global startup ambitions.

What’s Next: Stakes Beyond One Company

The outcome of these parallel legal battles in India and the US is poised to set uncharted precedents. It may reshape how Indian startups manage cross-border debt, litigation risk, and relations with secondary market investors. Founder-led firms worldwide are watching closely—BYJU’s case could redefine the boundaries of corporate control and creditor rights.

As the courts deliberate, there’s no doubt that this story is far from over.