Byju's founder Byju Raveendran has reportedly been sentenced to six months in jail in Singapore for repeatedly disobeying court orders in an investor dispute. Once India's most valuable startup at $22 billion, Byju's rise through edtech success has now turned into a legal and financial downfall.
The founder of the edtech company Byju's, Byju Raveendran, has been sentenced to jail in Singapore.
He has been imposed with this order after repeated violation and disobedience of multiple court orders.
Byju was born in Aazhikode, a village in Kerala, India, to Raveendran and Shobhanavalli, both of whom were teachers of physics and mathematics.
At a young age, he found himself very interested in mathematics and even helped students pass the tough exam.
In 2015, he launched the Byju's app, which used animations, games, and videos to make learning fun. This app focuses on students in grades 4-12, as well as those preparing for competitive examinations.
And in 2020, when the pandemic hit, schools were shut down, and students were urged to attend online classes. Eventually, parents started downloading the Byju's app.
Byju's raised billions of dollars from global investors. They used all this money to acquire many educational companies, sponsor the Indian cricket team, and hire Lionel Messi as their brand ambassador.
With all this, Byju's is valued at up to $22 billion, making it India's most valuable startup, and this is also the company's highest valuation.
People started complaining that Byju's salespeople were pressuring students' families to take expensive loans they couldn't afford for courses they didn't need.
When the pandemic ended, students returned to in-person classes, making online classes less of a priority for families.
Byju's received about $1.2 billion from American lenders. When the company missed deadlines, the lenders grew aggressive and demanded repayment.
A court fight began in the US when the lenders discovered that $533 million had disappeared into a hidden offshore fund.
Investors sued Byju Raveendran for mismanagement; the company ran out of money, missed salary payments, and filed for bankruptcy in India.
Currently, Byju Raveendran has been sentenced to six months in jail in Singapore for repeatedly breaking the law by ignoring the judge's direct orders.
The court did not sentence him for losing the investor's money or for failing his business; rather, it sentenced him for refusing to cooperate with the legal system.
When a corporate battle begins, the court orders the company founders to submit their assets, namely their personal wealth, bank accounts, and properties. Still, Raveendran did not appear in court, even after the court issued multiple orders demanding this information; he repeatedly violated those orders over a prolonged period.
The subsidiary of the Qatar Investment Authority (QIA) sued Raveendran to determine where its investment went and claw back its losses.
The judge demanded him to hand over the paperwork for the local entity in Singapore, Beeaar Investco Pte, which holds shares closely tied to the broader investor dispute, and his failure to produce the files was the final straw for the court.
It is reported that Raveendran's current location is unknown, whether he is physically present or has travelled to another country in response to the surrender order.
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