New Delhi: The crisis around Indian edtech company Byju’s has now turned into a global controversy. What started as a business slowdown has become a serious governance scandal. Creditors from the United States have alleged that money was siphoned off when the company was struggling to repay loans. The company’s founder, Byju Raveendran, has denied all such claims and said he is ready to face any legal action.
Byju’s was once seen as India’s biggest education startup. During the pandemic, the company grew very fast as students shifted to online learning. It raised billions of dollars from global investors and even sponsored big events like the Indian cricket team jersey. At its peak, the company was valued at more than 20 billion dollars.
However, after schools reopened, growth slowed down. The company had taken a large loan from US lenders. Now, these lenders are accusing the company of moving around hundreds of millions of dollars to different accounts without proper explanation. They claim that the money should have been used to repay debts.
Reports suggest that some funds were transferred to a US-based unit and later moved again. Creditors say this was done to avoid repayment. On the other hand, Byju Raveendran has said that all transfers were legal and part of normal business operations. He says the company is being unfairly targeted.
Courts in both India and the US are now involved. Insolvency proceedings have also started in some parts of the business. Many employees have lost jobs, and parents are worried about the future of their children’s courses.
Experts say this case is not just about one company. It raises bigger questions about how fast-growing startups are managed. When companies grow too quickly, sometimes financial discipline is ignored. Investors are now demanding stricter rules and better transparency.
