Byju’s Alpha Unit ‘Roundtripped’ $533 Mn to CEO Raveendran, Alleges US Court Filing

A new filing in the Delaware bankruptcy court in the US has levelled fresh allegations against Byju’s founder and former CEO, Byju Raveendran. According to the filing by the company’s US unit, Byju’s Alpha Inc, around $533 million was “roundtripped right back to Byju Raveendran and his affiliates.”

The unit is now controlled by Byju’s Term Loan B lenders, including GLAS Trust. Byju’s Alpha submitted the document while seeking court approval for a settlement with OCI Limited, a UK-based firm that received most of the disputed funds. OCI’s founder, Oliver Chapman, has provided a sworn declaration outlining how the money was used after OCI received it.

The filing states that the funds were not spent on legitimate business purposes such as procuring tablets, advertising, or other services for Think & Learn Pvt Ltd, the parent company of Byju’s, according to a Moneycontrol report.

The allegations have been denied by the company’s founders in a media statement issued on Monday.

According to the filing, Raveendran stated in a 2024 sworn declaration that the money sent to OCI was for legitimate activities, including purchasing tablets and funding advertising for Think & Learn. However, Chapman’s review reportedly found that in 2022, approximately $533 million was quietly transferred through opaque channels to a Singapore entity named Byju’s Global Pte Ltd, which is personally owned by Raveendran.

The filing claims this indicates a deliberate scheme to divert company funds for personal benefit.

The case emerges amid a broader dispute between Byju’s Alpha Inc and the company’s founders after they were ousted in 2023.

Byju’s had raised a $1.2 billion Term Loan B in November 2021 through its US subsidiary to support global expansion. By mid-2023, lenders alleged serious breaches of the loan agreement and claimed that around $500 million was unaccounted for. A Delaware court later permitted the lenders to take control of Byju’s Alpha in November 2023.

Byju’s founders said in a statement that they fully reject the allegations made in GLAS Trust’s latest Delaware filing, arguing that it relies on a selective and incomplete declaration from OCI CEO Oliver Chapman. They said his testimony is based on assumptions and selective claims, and does not demonstrate any wrongdoing. At most, they argued, it reflects his limited understanding of OCI’s expenditure and does not prove any diversion of funds.

"The recent Delaware Court filing appears to be another attempt to mislead the Delaware Courts in order to obtain judicial relief and damage Byju Raveendran personally and indirectly the other suspended directors of Think & Learn Private Limited," the statement said. Further adding that Byju Raveendran and the other Founders of Think & Learn intend to submit claims against Glas Trust and others related to conduct in violation of US Federal law, including claims of racketeering and obstruction of justice.

The allegations come at a time when investors in India are preparing to bid for the bankrupt parent company of Byju’s. Think & Learn Pvt Ltd was admitted to the corporate insolvency resolution process in July 2024 following a case filed by the Indian cricket board (BCCI).

Under Resolution Professional Shailendra Ajmera, bids have now been invited to revive the company. Reports suggest that Ronnie Screwvala’s UpGrad and Ranjan Pai’s Manipal Education and Medical Group have submitted proposals.