A Singapore court has sentenced Byju Raveendran, the founder of Indian edtech company Byju’s, to six months in jail for contempt over non-compliance with asset-related orders amid ongoing legal battles with investors and lenders.
The court ordered Raveendran to surrender to authorities, pay S$90,000 (about $70,500) in costs and submit documents establishing his legal ownership of Beeaar Investco Pte, an entity that held shares in a related company, according to the outlet.
The ruling marks the latest setback for the founder of the once high-flying Indian edtech company, who is facing claims from overseas investors, including in the US, where lenders are seeking to recover losses tied to a soured $1.2 billion loan.
Raveendran is facing legal action in Singapore from Qatar Holdings, a subsidiary of sovereign wealth fund Qatar Investment Authority (QIA), which invested in Byju’s during a funding round conducted as the company was cutting jobs and reducing headcount.
Settlement Discussions
Raveendran said the lenders, including GLAS Trust and QIA, as well as other stakeholders, have been in discussions with the founders and other parties, and a settlement has been agreed in principle, with only a few residual minor issues left to be finalised between certain parties.
Raveendran told journalists that he is disappointed that the recent Singapore court matter has been pursued and reported in a manner that creates a misleading impression about him, and that it is not a finding of fraud, dishonesty, or any wrongdoing on the merits.
Raveendran’s priority is to support a constructive resolution and avoid saying anything that may affect the ongoing settlement process, but he cannot allow a false and one-sided narrative to go uncontested and strongly rejects any such incorrect portrayal.
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Background
Byju’s was valued at $22 billion in 2022, but has seen its fortunes dwindle due to massive cash crunch, regulatory issues, and disputes with investors.
They have acknowledged that there has been no wrongdoing on Raveendran’s part or on the part of the other founders, which is why it is deeply unfortunate that this matter is being used to create a contrary public narrative at this sensitive stage.
Raveendran has been directed to appear on June 15 and appeal options are available, according to his statement.
Investor Disputes
Qatar Holdings was represented by Drew & Napier, while Byju’s Investments was represented by Fervent Chambers in the Singapore court case.
The decision by QIA to continue pressing this matter appears to be an unnecessary pressure tactic at a sensitive stage of the settlement process, Raveendran said, and they have maintained that he acted in good faith and in the best interests of Byju’s, its employees, students and stakeholders.
It has also been placed on record that neither Raveendran nor any of the founders personally received any portion of the disputed funds, and that the funds were used for legitimate business purposes, such as supporting healthcare workers.
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