Byju Raveendran, owner of ‘Byju’s’, the country’s first major education tech company, has been sentenced to 6 months in jail by a Singapore court. The court found that Raveendran concealed important documents related to his property and did not comply with court orders, which was considered ‘contempt of court’.
According to the Singapore court, Raveendran had been continuously ignoring orders to provide information related to his assets since April 2024. When he repeatedly failed to comply with the court, the court found him guilty and sentenced him to jail. The court has asked Raveendran to surrender immediately to the authorities.
A fine of ₹67 lakh will also have to be paid
Image credit: byjus.com
Along with the sentence, Raveendran has also been fined 90,000 Singapore dollars (approximately 67 lakh rupees). He will have to pay this amount as legal costs. Additionally, Raveendran has been ordered to submit documents proving the legal ownership of ‘BR Investco PTE’ to the court. This is a corporate entity that holds shares of the concerned company.
Qatar Investment Authority had filed the case
The case against Raveendran in the Singapore court was filed by a subsidiary of Qatar’s sovereign wealth fund, ‘Qatar Investment Authority’ (QIA). QIA had invested in Byju’s funding round when the company was going through a severe crisis and was laying off its employees.
In this case, Qatar Holdings was represented in court by ‘Drew & Napier’. Meanwhile, ‘Fervent Chambers’ represented Byju’s Investments. Currently, there has been no reaction from Raveendran regarding this sentence. It is also not yet clear whether he is currently in Singapore or another country. Byju Raveendran Says Settlement Talks Progressing Amid Jail Sentence After being sentenced to six months in jail, Byju Raveendran issued a statement saying that lenders of his edtech startup, including GLAS Trust and the Qatar Investment Authority, have agreed in principle to a settlement, with only a few minor issues still unresolved.
“I have no role in those remaining issues,” Raveendran said, adding, “I chose resolution over confrontation.”
However, it is still unclear where Raveendran is currently located and whether he will surrender before the Singapore court.
Legal Battle Also Ongoing with US Investors
This jail sentence decision comes for Raveendran at a time when he is facing lawsuits from foreign investors around the world. In the US, lenders are also fighting a legal battle to recover a $1.2 billion (approx. ₹11,000 crore) loan from him. This loan became controversial when the company’s financial situation began to deteriorate.
Raveendran started his company, named ‘Think and Learn Private Limited’, which became known globally as ‘Byju’s’. At one point, he was considered among India’s most successful startup founders, and this company made him a billionaire. This company, which secured large-scale investments from global firms, was once considered the biggest ‘success story’ in the Indian startup world. How did the $22 billion company collapse?
Byju’s was once India’s most valuable startup. Its valuation reached $22 billion (approximately ₹2.11 lakh crore) in 2022. The company’s logo was featured on the Indian cricket team’s jersey.
The collapse began with a $1.2 billion (approximately ₹11,000 crore) term loan taken from foreign lenders in November 2021. Lenders accused the company of a lack of governance and transparency. Subsequent audit delays and mounting losses added fuel to the fire. In fiscal year 2021, the company’s losses reached ₹4,588 crore.
Creditors allege $533 million misappropriation
The dispute between Byju’s and its lenders deepened after the creditors alleged that funds worth around $533 million (about ₹5,100 crore) were transferred without their knowledge. Proceedings in the US and UK courts claim the money was siphoned off through a company called OCI Ltd. US courts have described this as an “illegal transfer.”
Cricket deal triggers bankruptcy proceedings
Byju’s troubles in India increased when the National Company Law Tribunal (NCLT) initiated insolvency proceedings against it in July 2024.
Surprisingly, the company’s sponsorship of the Board of Control for Cricket in India (BCCI), whose sponsorship brought it fame, triggered this action due to non-payment of ₹158 crore. Now, the company is on the verge of losing control of its most valuable asset, “Aakash.”
No salary to employees, founder’s net worth reduced to zero The company’s poor condition has also affected its employees. Salaries have been frozen for several months, and there have been widespread layoffs. Following the loss of investor confidence, Forbes has declared Byju Raveendran’s net worth as zero.
