BYJU’S Missing $533 Mn: Raveendran Denies ‘Roundtripping’ Allegations

BYJU’S cofounder Byju Raveendran has categorically denied allegations made in the US Delaware Bankruptcy Court that he diverted $533 Mn belonging to the edtech’s US-based entity BYJU’S Alpha, calling the claims “false, misleading and defamatory”.

Speaking with Inc42, he said the debtors’ arguments relied on a “selective and incomplete” declaration made by UK-based OCI CEO Oliver Chapman and insisted that forthcoming filings will rebut “each of the assertions made”.

“Chapman’s testimony is full of conjectures and selective insinuations and does not substantiate any claim of wrongdoing by the founders of BYJU’S. At most, his declaration reflects his limited knowledge of specific expenditures undertaken by OCI; it does not establish any diversion of funds by the founders,” Raveendran said.

In a sworn declaration filed as part of BYJU’S Alpha settlement, UK-based logistics firm OCI’s CEO Oliver Chapman contradicted BYJU’S earlier affidavit, stating that the funds were not used for procurement or marketing, as Raveendran had claimed.

Instead, he alleged that the “vast majority” of the money was moved through opaque transfers to a Singapore-based entity — BYJU’S Global Pte Ltd — which, he said, was owned personally by Raveendran.

This contradicts Raveendran’s own sworn affidavit from last year, in which he claimed the funds sent to OCI were used for “legitimate commercial purposes”, including procurement of tablets, IT equipment and marketing services for Think & Learn and its subsidiaries.

Chapman’s declaration forms part of OCI’s settlement with BYJU’S Alpha, now controlled by creditor Glas Trust. As part of the settlement, OCI provided its sworn statement contradicting Raveendran’s earlier claims on the use of funds.

BYJU’S’ cofounder, who is dousing fires on multiple fronts as of now, said that the company, in its forthcoming filings in the US, will provide evidence rebutting each of the assertions made. Besides, he also plans to initiate defamation proceedings against all individuals and entities involved in disseminating “false, misleading and defamatory statements” regarding the founders.

The cofounder had earlier made his declaration around the usage of the $1.2 Bn Term Loan B taken by BYJU’S and also claimed that he, along with his wife (Divya Gokulnath) and brother (Riju Ravindran), had infused $890 Mn from their own pockets into the company since January 2022.

BYJU'S Funding History

Source: Inc42 Datalabs

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How BYJU’S Crumbled 

This marks the second instance this year when Raveendran has come under question over the case of missing $533 Mn. Earlier in April, BYJU’S Alpha sued Raveendran, his wife and cofounder Gokulnath and advisor Anita Kishore for allegedly ‘misappropriating’ $533 Mn.

BYJU’S, once one of the most valuable Indian startups, has effectively unravelled after years of aggressive expansion, opaque financial practices and rising debt. The company’s downfall accelerated when auditors and investors began flagging delayed filings, undisclosed revenue recognition practices, and mounting losses across its acquired subsidiaries.

A string of governance crises — from auditor Deloitte’s resignation and mass layoffs to debt covenant breaches and lawsuits from lenders — further eroded confidence. By 2024, the edtech giant was battling allegations of misappropriation of funds, non-payment to vendors, and regulatory scrutiny. 

These issues culminated in a full-blown financial and legal meltdown. As things stand today, BYJU’S parent Think & Learn is undergoing insolvency proceedings. Edtech startup upGrad and Manipal Education & Medical Group (MEMG) have evinced interest in acquiring the company’s assets.