‘I’m the Byju of BYJU’S’: Raveendran, CEO of bankrupt edtech calls for probe into EY-Glas Belief ‘collusion’

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Byju Raveendran, the founder and CEO of the bankrupt edtech agency Byju’s, lastly broke his silence, sharing an emotional put up on LinkedIn. Starting with the assertion, “I am the Byju of BYJU’S,” he detailed what went flawed and the way the state of affairs is being misrepresented. He stated that he’ll now join instantly with the general public, revealing that he has bought all the pieces he owns “to keep his mission alive”.

Byju Raveendran, founding father of Byju’s, the Bangalore-based academic know-how start-up.(AFP)

Raveendran additionally referred to as for a “thorough investigation” into alleged collusion and fraud involving the agency’s lender Glas Belief, consultancy agency EY, and former decision skilled Pankaj Srivastava.

“I am the Byju of BYJU’S, and I am here now. I should have been here sooner. But I was too busy building my company. Then I was too busy saving everything I built. I have long been wanting to connect with you directly. But I was waiting for justice to be done and truth to prevail. Today, I do not want to wait. Today, I cannot wait,” he wrote on LinkedIn.

His assertion follows a viral LinkedIn put up by a whistleblower from EY India, which alleged that the audit agency labored with Glas Belief and was appointed by Srivastava to advise him on Byju’s insolvency proceedings.

“Me and several employees received a document with conclusive evidence of criminal collusion between EY India, which I otherwise held in high regard, Glas Trust, which claims to represent the lenders it does not represent, and the IRP (resolution professional Srivastava) who was appointed by an Indian court to protect Byju’s but ended up destroying it,” Raveendran wrote. “I am sure a thorough investigation of this evidence will reveal the truth. I request the authorities to take that up immediately,” he added.

Last month, the former resolution professional of insolvency-bound Byju’s, Pankaj Srivastava, approached the National Company Law Appellate Tribunal (NCLAT), challenging the disciplinary action recommended against him by the Bengaluru bench of the NCLT.

Additionally, Byju’s former promoters and Byju Raveendran’s brother, Riju Raveendran, have also moved the NCLAT against the NCLT’s order reinstating Glas Trust and Aditya Birla Finance in the edtech firm’s Committee of Creditors (CoC).

On January 29, the National Company Law Tribunal (NCLT) directed disciplinary proceedings against Byju’s resolution professional and overturned his decision to exclude Glas Trust and Aditya Birla Finance from the CoC.

Raveendran’s full post here:

However, Raveendran’s wife and Byju’s co-founder, Divya Gokulnath, claimed in another LinkedIn post, “Byju’s post and account were taken down. Investigating why. But no problem. Here we go again :)”

Byju Raveendran’s rise and fall

Byju Raveendran turned a distinguished determine in India’s push to determine itself as a tech hub, securing investments from world companies comparable to Sequoia Capital and Mark Zuckerberg’s Chan Zuckerberg Initiative.

A trainer and engineer from Kerala, Raveendran began tutoring college students in Bengaluru in 2005. His courses grew quickly, attracting such massive crowds that he ultimately held classes in stadiums to accommodate 1000’s of scholars.

He later remodeled his enterprise right into a digital platform, launching a self-learning app centered on topics like math, science, and English.

Through the pandemic-driven increase in on-line training, Byju’s aggressively expanded, buying firms like Nice Studying Pvt. Ltd., Epic!, and Aakash Academic Companies in 2021. By early 2022, the corporate’s valuation had soared to round $22 billion.

Nevertheless, challenges quickly emerged. In keeping with a Bloomberg report, the US Federal Reserve’s rate of interest hikes elevated Byju’s financing prices, whereas banks that had been offering loans to its prospects withdrew their help. This lower off a key income stream, as prospects had relied on these loans to pay for long-term programs. By late 2022, delayed monetary disclosures raised issues amongst lenders, prompting negotiations to keep away from a default on Byju’s US-issued debt.

In mid-2023, the difficulty escalated to a Delaware courtroom, the place debt holders sued Byju’s Alpha, in search of management over a subsidiary they believed held unspent mortgage proceeds. Byju’s stopped making curiosity funds and accused collectors, together with Redwood Capital Administration, of fabricating a disaster.

The authorized battles, together with two US chapter instances, resulted in vital setbacks for Byju’s and solid doubt on Raveendran’s administration of the corporate.

(With inputs from PTI, Bloomberg)