Byju Raveendran, the embattled founder of edtech firm Byju's, who has been sentenced to six months in prison by a Singapore court in connection with a dispute linked to the default on a loan obtained from the Qatar Investment Authority (QIA), has said the sentencing is `not from any finding of fraud or dishonesty.'
In a statement, Raveendran said the Singapore proceedings involved a “procedural contempt of court order” arising from disputes over document disclosure and not from any finding of fraud or dishonesty.
Raveendran also claimed that lenders including QIA and GLAS Trust, along with other stakeholders, had largely agreed to a settlement framework, with only a few minor issues remaining unresolved.
Byju’s witnessed explosive growth during the pandemic-led edtech boom, raising massive funding and securing a $1.2 billion term loan in 2021 to finance a string of global acquisitions.
At its peak, the company was valued at nearly $22 billion, making it one of India’s most valuable startups.
However, concerns soon emerged over delayed financial filings, corporate governance issues and the company’s heavy cash burn.
Audit firm Deloitte and several board members resigned from the company amid growing concerns over financial reporting and internal controls.
Deloitte cited “long delayed” financial statements while stepping down.
The company also came under criticism for aggressive sales practices and delays in employee payments.
Meanwhile, the Board of Control for Cricket in India (BCCI) initiated insolvency proceedings against Byju’s over unpaid sponsorship dues of ₹158 crore related to the Indian cricket team sponsorship deal.
On July 16, 2024, the National Company Law Tribunal (NCLT) admitted Think & Learn Pvt Ltd, the parent company of Byju’s, into insolvency proceedings.
An Interim Resolution Professional (IRP) subsequently took control of the company’s operations.
Creditors alleged that the company attempted to delay or obstruct the formation of the Committee of Creditors (CoC).
A settlement between Byju’s and the BCCI was reached during July-August 2024, funded by Riju Raveendran, brother of the edtech founder.
On August 2, 2024, the NCLT allowed withdrawal of insolvency proceedings against the company, but the relief was later stayed by the Supreme Court of India.
Byju’s US lenders pursued legal action in Delaware courts, accusing the company of misusing nearly $533 million in loan funds.
Meanwhile, Aakash Educational Services, one of Byju’s biggest acquisitions, proposed a rights issue to raise fresh capital as insolvency proceedings intensified.
The matter eventually reached the Supreme Court, which permitted the rights issue to proceed. Analysts noted that if Byju’s stake fell below a certain threshold, it could lose control of Aakash entirely.
In 2025, the Supreme Court rejected Byju’s argument that insolvency proceedings could be bypassed after settlements had been reached. The company also continued to face difficulties in regaining operational control.
In May 2026, a Singapore court sentenced Raveendran to six months in jail in the contempt case linked to the ongoing dispute. He has indicated that he plans to appeal against the ruling.
(By arrangement with mint.com)
