'Broke not broken': Byju's founder vows comeback amid legal turmoil

Dubai: Byju Raveendran, founder of edtech giant Byju’s, has vowed to turn the struggling company around. Sharing a throwback picture on X, the 45-year-old wrote, “Broke, not Broken. We will rise again.”

Once valued at $22 billion in 2022, Byju’s is now embroiled in legal battles over $1 billion in unpaid debts across courts in the US and India.

Raveendran’s latest update comes a month after breaking his long silence with a detailed turnaround plan.

Netizens react: Praise, criticism, and sarcasm

However, his statement received mixed reactions on X. While some lauded his journey from teacher to business tycoon, many accused him of betraying parents’ trust.

One user questioned whether Raveendran’s account was even real, while another wrote: "Across India, parents and students entrusted you with their hard-earned money. Your sales teams burned the midnight oil to make your dream their mission. But you failed to honor that trust."

Criticism was sharp, with users slamming Byju’s for its aggressive sales tactics and financial mismanagement.

• "Karma hit you badly! Selling tablets to the poor under the fear of missing out on education. Trapping them in loans and EMIs. What an evil organization Byju’s was.”

• "You may be broke, but you’ve broken and shattered the dreams of many students and families!"

• "What good is rising again if it comes at the expense of scamming the less privileged?"

Hyper-optimism and plans for a comeback

This marks Raveendran’s second social media post after wiping his accounts amid the company’s legal and financial turmoil. On March 29, he hinted at Byju’s comeback, with his post garnering over 93,900 views.

He ended his message with:
"Once we relaunch—sooner than expected—we will rehire exclusively from our incredible pool of former BYJUites. My hyper-optimism may seem crazy to some. But let’s not forget, you have to be odd to be number one."

From Edtech giant to bankruptcy battles

Byju’s, once an industry leader, defaulted on a $1.2 billion loan, leading to insolvency proceedings initiated by the BCCI over unpaid sponsorship dues. Its valuation has plummeted, with investors writing off stakes, while unpaid salaries, layoffs, and operational challenges continue to mount.

US court rules against Byju’s in $533 million case

On March 1, a US court ruled that a top Byju’s official violated fiduciary duty by wrongfully hiding $533 million from lenders. The court found that Byju’s fraudulently transferred funds to a Miami-based hedge fund to keep them out of creditors' reach.

US Bankruptcy Judge John Dorsey ruled that lenders are entitled to financial damages, with the amount to be determined in a separate hearing.

The ruling is another blow to Byju’s, which is facing bankruptcy proceedings in both the US and India.

• In the US, creditors are seeking to liquidate Byju’s education software acquisitions, which the company bought for $820 million.

• In India, lenders are pursuing compensation through insolvency proceedings, though it remains uncertain how much value is left in Byju’s assets.

Lenders secure legal wins in India

Earlier this year, lenders won another legal battle in India when a court appointed Glas Trust Co.—the lenders' agent—to an influential creditors’ committee in Byju’s insolvency case.

The court found that a restructuring official had wrongly removed Glas Trust from the committee last year and ordered an investigation into the matter.

Byju’s US bankruptcy case is filed as BYJU’s Alpha Inc., 24-50013, US Bankruptcy Court, District of Delaware (Wilmington).