BYJU’S Saga: US Court Orders Byju Raveendran To Pay $1.07 Bn

SUMMARY

The ruling came on the back of Byju Raveendran failing to comply with discovery and court orders in the case for alleged misappropriation of $533 Mn from BYJU'S Alpha

The court ordered Raveendran to pay $533 Mn in damages for what the court determined to be fraudulent transfer of BYJU'S Alpha funds

The cofounder was also asked to pay another $540.6 Mn linked to the transfer of the debtor's interest in Camshaft Capital Fund, a US-based hedge fund

Adding another chapter in BYJU’S long legal battle, the Delaware Bankruptcy Court in the US has entered a default judgment, asking the beleaguered startup’s cofounder Byju Raveendran to pay $1.07 Bn.

The ruling, dated November 20, came on the back of Raveendran failing to comply with discovery and court orders in the case for alleged misappropriation of $533 Mn from the edtech startup’s US subsidiary, BYJU’S Alpha.

The court ordered Raveendran to pay $533 Mn in damages for what the court determined to be fraudulent transfer of BYJU’S Alpha funds in 2022, along with another $540.6 Mn linked to the transfer of the debtor’s interest in Camshaft Capital Fund, a US-based hedge fund.

The cofounder was also asked by Judge Brendan Shannon to provide a comprehensive, accurate accounting of all Alpha Funds and associated proceeds.

Responding to the order, Raveendran, in a statement, said that the court “prematurely” issued the judgement despite lender GLAS Trust withdrawing the claim for damages in September 2025.

“This judgement is a result of an expedited court procedure resulting from a gross misleading of the court by GLAS. Byju Raveendran will present evidence of such misrepresentation in the previously announced claim of not less than $2.5 Bn which will be submitted shortly before the US Courts,” the statement added.

He added that he was not given enough time to retain legal counsel and present a defence stance.

The statement added that Raveendran, along with other cofounders of BYJU’S, will accelerate the preparation of their “US Federal claims of racketeering and obstruction of justice” in violation of US law estimated at over $2.5 Bn.

Earlier this week, BYJU’S told Inc42 that the allegations that he diverted $533 Mn belonging to BYJU’S Alpha were “false, misleading and defamatory”. He added that 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”.

The case traces back to a $1.2 Bn Term Loan B taken by BYJU’S in 2021 through BYJU’S Alpha. The loan was originally intended to support global expansion, acquisitions, and general corporate activities. The amount, however, is less than 20% of the total funding BYJU’S has raised in its lifetime.

However, in 2022, the lenders began questioning the deployment of a significant portion of these funds. Their concerns deepened when $533 Mn from BYJU’S Alpha was moved to Camshaft Capital.

Amid the ongoing tensions, the lenders appointed GLAS Trust as their agent and proceeded with legal action. BYJU’S, however, argued that the lenders were acting unlawfully and challenged their authority over the subsidiary, triggering multiple legal battles in both the US and India.

BYJU’S, once the poster child of the Indian startup ecosystem, is currently undergoing insolvency proceedings in India.