A US court has imposed a big fine of over $1 billion (around ₹9,000 crore) on BYJU’S founder Byju Raveendran. The order was delivered by a bankruptcy court in Delaware on a petition filed by BYJU’S Alpha and US-based lending firm Glass Trust LLC. BYJU’S Alpha, a Delaware-based subsidiary created in 2021, was set up to raise funds for the Indian Ed-tech company.
The Delaware Bankruptcy Court found that Raveendran failed to comply with the discovery order and continued to be evasive on several occasions, the report said, citing the judgement issued on November 20.
Case Background
In 2021, BYJU’S had borrowed $1.2 billion (about ₹11,000 crore) from a consortium of American banks and lenders to support its operations. But soon, the company defaulted on loan repayments. BYJU’S Alpha filed a lawsuit in April 2024 against Raveendran, his wife Divya Gokulnath, his brother Riju Raveendran, and others, accusing them of theft and fraud involving $533 million (around ₹4,500 crore). In November 2025, the Delaware court issued a default judgment ordering Raveendran to pay more than $1 billion.
BYJU’s Alpha was created when Raveendran oversaw operations of Think and Learn Pvt Ltd (TLPL), the parent company behind the Byju’s brand. TLPL had raised a $1 billion Term Loan B from a consortium of US lenders. Those lenders, represented by US-based GLAS Trust Company LLC, alleged that $533 million had been illegitimately transferred out of the US in violation of the loan terms. GLAS Trust then secured an earlier order to take control of BYJU’s Alpha. Both BYJU’s Alpha and GLAS later approached the Delaware Bankruptcy Court seeking discovery of the missing funds and related transactions.
How BYJUs Failed?
BYJU’s was founded in 2011 as a small coaching platform and launched its learning app in 2015. During the COVID-19 pandemic (2020–21), demand for online learning surged, and BYJU’S scaled aggressively. Heavy marketing campaigns—including endorsements by Shah Rukh Khan—and major acquisitions such as WhiteHat Jr. and Aakash pushed its valuation to $22 billion by 2022, making it India’s most valuable startup at the time.
After 2022, BYJU’S began to fall. The heavy debt taken on for aggressive expansion and multiple acquisitions turned into a major burden. BYJU’S started delaying in financial reporting and a massive loss of ₹8,245 crore in 2021–22 raised concerns about transparency. Allegations of aggressive sales practices and refusal to issue refunds further eroded customer trust. By 2023, the situation worsened. The Enforcement Directorate (ED) started an investigation into FEMA violations. Board members resigned. US lenders pushed for bankruptcy proceedings. Layoffs continued, and the company’s valuation decreased. By 2024, BYJU’S valuation had fallen to zero.
