Byju's founder alleges hostile takeover, to sue debt buyers for $2.5 bn

Byju Raveendran, founder of the embattled Indian education technology company, has accused opportunistic debt buyers of orchestrating a “hostile takeover” through bankruptcy proceedings, claiming they purchased distressed loans at deep discounts to seize control of his once-$22 billion startup.

In a lengthy statement on LinkedIn marking one year since Think & Learn Pvt, which operates as Byju’s, entered insolvency proceedings, Raveendran said the company was current on interest payments when creditors triggered bankruptcy over what he called a “technical default” related to delayed audit filings.

“This was not a routine insolvency. This was a corporate raid. A hostile takeover bid by opportunistic secondary debt buyers, masquerading as lenders, trying to double their money by destroying a company,” said Raveendran.

The entrepreneur said he and his family injected over $800 million of personal funds to keep the company operating. He announced plans to seek $2.5 billion in damages against what he characterised as “financial predators” who destroyed value at the expense of 85,000 employees and 250 million students.

“What happened to Byju’s can happen to anyone building something valuable,” he said. “This is not just about me. It's about the 85,000 people who once worked at Byju’s, the 250 million students who learn with us, and the idea that entrepreneurs should not be bullied into submission by financial predators.”

Some claims have already been filed in Indian courts against Glas Trust, a former subsidiary that now seeks control over parts of the business. There is an ongoing battle with US lenders who are demanding $1 billion in unpaid dues, triggering the firm’s insolvency. The worth of what was once India’s most-valued startup is now zero.

Raveendran claimed that the loan was not even due until 2026. He said the so-called “default” was technical—a delay in audit filings due to global operations and regulatory complexity. “But that was used to manufacture a crisis and accelerate the loan,” he alleged. “The so-called lenders bought the loan at deep discounts in the secondary market. The credit agreement explicitly disqualified such distressed asset funds from asserting control. Yet, through collusion and procedural manipulation, they seized control of Byju’s US subsidiary and unleashed chaos.”