One year ago, bankruptcy proceedings began against Think & Learn Pvt Ltd—the parent company of BYJU’S. What initially appeared to be a routine insolvency process has now, as claimed by the company’s legal team, unfolded into something far more serious: a sharp, coordinated corporate raid. Secondary debt buyers, who posed as legitimate lenders, allegedly used a delay in audit filings to fabricate a “default” and took swift steps to seize control of BYJU’S U.S. operations.
Loan Not Even Due—But the Takeover Began
According to BYJU’S, the loan wasn’t due until 2026, and interest payments were being made regularly. Yet, aggressive lenders—who had acquired the loan at a discount—sought control over U.S. assets. Despite the original credit agreement restricting such control by distressed-asset buyers, these entities allegedly exploited legal loopholes to override that clause. The result? Massive operational disruption and severe loss of trust in the U.S. arm.
No Guilty Verdict—Yet False Stories Spread
BYJU’S founder Byju Raveendran, along with Divya and Riju, has clarified that no court has found them guilty of any wrongdoing. In fact, he claims to have personally invested over $800 million to rescue the company. As for the $533 million that lenders allege is “missing”—BYJU’S maintains that it’s fully traceable and documented. However, during this process, thousands of crucial company emails reportedly disappeared while under the oversight of an Interim Resolution Professional (IRP)—who has since been removed and is now under investigation.
BYJU’S Assets Sold at Throwaway Prices
During the legal battle, major BYJU’S U.S. assets were sold at significant losses. Epic!, acquired for $500 million, was sold to China-based TAL Education for just $95 million. Similarly, Tynker, once valued at $200 million, was auctioned for merely $2.2 million by CodeHS. Another unit, Osmo, is also up for sale. These forced distress sales, say insiders, are being carried out to recover the $1.2 billion loan—though BYJU’S argues the process lacks fairness and transparency.
Brands Drift Away; Competitors Move In
Meanwhile, Aakash Educational Services—a key BYJU’S acquisition—has approached the court citing conflict of interest by EY in its handling of the insolvency. They’ve demanded increased transparency in the entire process. Other subsidiaries like Great Learning have started operating independently as BYJU’S central structure continues to fragment.
A Larger Battle for India’s Startup Ecosystem
Raveendran insists that this crisis is about more than one company. Legal action has now been initiated, with BYJU’S seeking $2.5 billion in damages, claiming predatory behavior by certain financial players. The case, according to him, is about defending India’s entrepreneurial spirit and protecting business builders from being dismantled by corporate vultures. He also reaffirmed his commitment to the 250 million learners and 85,000 employees who once believed in the BYJU’S dream.
A Hard Lesson for Indian Startups
This ongoing saga is being seen as a cautionary tale for India’s startup ecosystem. In a funding winter, rapid growth without financial safeguards can turn fatal. Several other Indian startups—such as GlobalBees and GoMechanic—have faced similar collapses. But while others folded, BYJU’S continues to fight. “We’re building BYJU’S 3.0,” Raveendran says, “with truth, mission, and resilience at the core.”
