Rejecting allegations of being a ‘fugitive’, Byju Raveendran, co-founder of troubled edtech Byju’s, on Saturday said these labels were part of a ‘fake narrative’ and ‘malicious media campaign’ designed to seize control of his company. “These are narratives created in trying to take control of the company,” he said in a media podcast, adding that such characterisations have “destroyed value for all stakeholders”.
Both co-founders Raveendran and wife Divya Gokulnath, however, were optimistic of transforming the company’s dramatic downfall into an opportunity for revival.
Referring to the myriad of legal challenges the company has faced in the past two years, Raveendran said: “Things like these can create post-traumatic stress disorder (PTSD), but for those who are mission-driven like us from the very beginning, we will use it to create post-traumatic growth.”
In the interview shot in Dubai, where the family currently resides, Raveendran accused financial services firm Ernst & Young (EY), legal firm Khaitan & Co, and US-based lenders GLAS Trust, of colluding to orchestrate the collapse of his $22-billion edtech empire, and “forcefully take control of the company”.
“The greed of a few vulture lenders in the US, who have colluded with some large institutions, including EY and Khaitan, to carry out fraud has derailed our vision of creating a million teaching jobs,” claimed Raveendran.
“Two years back, we were sitting on thousands of crores. Today, we have nothing,” he said, adding that the precarious financial situation left Byju’s unable to adequately defend itself in US courts. “Today the Delaware court in US is passing judgments against us because we don’t even have money to fight the legal battles there. We can’t afford the right representation. When we get back control, we’ll fight better. I am using the word ‘when’ consciously, because we have full faith in the Indian judicial system. It may be slow, but justice will be delivered,” he asserted.
“The $1.2-billion Term Loan B was never at financial default. The group of vulture hedge fund lenders have used a technical default as a trigger to take over control. Our compliance to an RBI regulation change that prevented us from giving guarantee for one of our subsidies in India is what has been used in US courts to call a default. We are confident this will not stand in Indian courts,” Raveendran added.
“Our entire wealth and company were established in India. All profits were generated within India, taxes were paid in India, and investments were reinvested in India.” He said the Enforcement Directorate’s investigation focused on corporate matters, not him personally, pointing out that both he and his wife have traveled freely to India even after the ED inquiry began.
Despite being ousted from the company, the couple remains focused on the future. “We are excited to talk about Byju’s 3.0 because we don’t belong in courtrooms. We belong in classrooms,” said Gokulnath.
The couple presented themselves as modest educators caught in a corporate battle. “All of this is untrue. We don’t own any luxury cars. We don’t own any luxury homes,” Gokulnath stated, countering rumours of extravagant spending. “Honestly, I don’t care about the money. Lakshmi can come and go. But Saraswati—the goddess of knowledge—is always with us,” she said.
“Teaching is the most satisfying job and that’s what is an unfinished dream for us. We will make a comeback. Even today there are teachers who remain committed to the mission we began. We will continue to strive for Byju’s 3.0, which will integrate AI into self-learning in ways that haven’t been imagined before. Everyone is in for a surprise. We have nothing to lose. We are broke, but not broken,” Raveendran said.