BYJU'S Cofounders To Seek $2.5 Bn In Damages

Troubled edtech startup BYJU’S cofounders are planning to take legal action to seek monetary damages to the tune of $2.5 Bn from “parties” which have caused damage to them “personally and their businesses”.

In a statement, a counsel for the cofounders, Byju Raveendran and Divya Gokulnath, said that the duo are also preparing “additional claims” against the aforementioned “parties” in other jurisdictions. The counsel termed the “conduct” of the edtech’s term loan B (TLB) lenders, under Glas Trust, as “reprehensible and improper”.

“BYJU’S founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses, including Think & Learn (BYJU’S parent). The conduct before the courts by Alpha, Glas Trust and its counsel has been reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for BYJU’s founders…” said senior litigation advisor at Lazareff Le Bars Eurl, J Michael McNutt.

Notably, BYJU’S Alpha is the US-based subsidiary of BYJU’S taken over by lenders.

“…. Additional claims are being prepared against those parties in other jurisdictions. Such claims to be issued by all or some of BYJU’S founders are expected to request monetary damages of not less than $2.5 Bn.”

The statement said that the cofounders also dispute all claims made by BYJU’S resolution professional (RP) and Glas Trust in connection with the edtech’s bankruptcy proceedings.

This marks the latest twist in the insolvency proceedings of the beleaguered startup. Last month, it was reported that the edtech platform’s current RP Shailendra Ajmera filed a lawsuit before the National Company Law Tribunal (NCLT) against Raveendran, his brother Riju Ravindran and Gokulnath for allegedly transferring the company assets.

Right after that, a US bankruptcy court held Raveendran in civil contempt for failing to appear before it and submitting evidence on time. He has been ordered to pay a fine of $10,000 for each day he remains in contempt of the court’s orders.

Subsequently, earlier this month, RP Ajmera filed INR 1,597 Cr lawsuit against the edtech’s Dubai-based partner, More Ideas General Trading, over unpaid dues.

All this follows the March 2025 ruling by the same US bankruptcy court in favour of the creditors of BYJU’S over the company’s alleged fraudulent transfer of $533 Mn out of the $1.2 Bn TLB extended by a consortium of lenders.

Following the ruling, BYJU’S Alpha filed a lawsuit against Raveendran, Gokulnath, and company advisor Anita Kishore for the alleged misappropriation of the funds.

Once valued at $22 Bn, BYJU’S has steadily crumbled in the past few years and is now starting at insolvency.

The post BYJU’S Cofounders To Seek $2.5 Bn In Damages appeared first on Inc42 Media.