US Subsidiary Files Lawsuit Against Byju’s Founder, Wife, Brother & Others For Alleged Theft Of $533 Million

Byju's Alpha Inc., a US-based subsidiary of Think & Learn Pvt Ltd, which operated the embattled edtech startup Byju's, has sued its parent company, its founder Byju Raveendran, his co-founder, his wife Divya Gokulnath and advisor Anita Kishore for an alleged misappropriation of $533 million.

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US-based subsidiary sues Byju's

According to the company's official statement released on April 9, the lawsuit states that “each of them co-orchestrated and executed a lawless scheme to conceal and steal $533 million of loan proceeds.” [Source: Hindustan Times]

"This action is being brought to now hold Byju Raveendran, the former CEO of BYJU’s Alpha, and two more of his co-conspirators – namely his co-founder and close business associate – accountable for their roles in masterminding the theft of more than half a billion dollars,” the lenders of the loan stated.

For the uninitiated, Byju's Alpha Inc. is a Delaware-based special-purpose financing vehicle established in 2021 to receive a $1.5 billion term loan.

This new lawsuit comes after a Delaware court's recent judgment against Byju Raveendran's brother, Riju Raveendran, and “Byju’s’ ultimate corporate parent in India.”

Byju's Alpha alleges that in mid-2022, after receiving the loan, $533 million was transferred to Camshaft Capital Fund, LP, a “sham hedge fund” founded by William Morton, with no investment track record and a listed headquarters with the same address as a pancake restaurant.”

This was before the Raveendran brothers were removed as directors and officers of the company on March 3, 2023.

Thereafter, BYJU’s Alpha’s limited partnership interest in Camshaft Capital Fund was transferred by the brothers to Inspilearn LLC, and then again transferred to, and then redeemed by an offshore trust of Inspilearn in February 2024.

Then the company defaulted on the credit agreement in March 2022, a few months after receiving the term loans.

Byju's Alpha filed for Chapter 11 bankruptcy on February 1, 2024. Inspilearn allegedly moved the funds to an unidentified non-US T&L subsidiary.

As per the statement, Byju, Riju, Divya, and Anita had “repeatedly misrepresented and contradicted themselves” regarding the use and location of the $533 million Alpha Funds.

"If it is not abundantly clear to them by now, Byju and his cohorts will soon learn that the laws of the United States are immutable, and they can either choose to live the rest of their days as international fugitives or face the music and return the money they stole,” Byju's Alpha said in its statement. 

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