Did not run away, will return to India: Byju Raveendran amid insolvency crisis

Byju Raveendran, the founder of troubled edtech giant Byju’s addressed misconceptions surrounding his move to Dubai and reaffirmed his commitment to reviving the company, which has been facing severe financial and legal challenges.
Speaking during his first virtual press conference in four years, Raveendran refuted rumours that he had fled India to avoid the ongoing insolvency crisis.
“It’s very unfortunate that people think that I ran to Dubai because I had to. I came to Dubai for a year for my father’s treatment, which led to our ongoing stay. But let me be clear, I did not run away,” said Raveendran said as quoted by Moneycontrol in its report.
In the candid discussion, he spoke about his plans to restore Byju’s to its former glory, which once stood as a leader in the edtech industry.
“I’ll come to India, and I’ll fill stadiums… The timing has not been decided, but it will be soon,” he said.
Raveendran expressed optimism, even in the face of the company’s current troubles. “I only need to se a 1% chance to make it work. I’m not worried about what order will come. Whatever comes, I’ll find a way out,” he added.
“If they are willing to work with me, I am willing to give them money back before I take a single rupee out. We paid $140 million but they wanted the entire $1.2 billion which we had already committed or invested by then. There is no way we could have given them back for a long time. Most lenders wanted to settle but one or two wanted to make a killing out of it,” said Raveendran as quoted by PTI.
Once valued at $22 billion in 2022, Byju’s has seen its fortunes take a sharp downturn due to mounting debts and legal disputes. The company is currently embroiled in a significant financial struggle with creditors over $1 billion in unpaid loans, leading to insolvency proceedings in both India and the United States.
In June 2024, insolvency proceedings against Byju’s were initiated after the Board of Control for Cricket in India (BCCI) alleged that the company had defaulted on a Rs 158.9 crore payment related to a sponsorship deal. US-based financial creditor Glas Trust also objected to a settlement between Byju’s and the BCCI, claiming that funds had been misappropriated.
On September 26, 2024, the Supreme Court of India reserved its judgment on a petition challenging the National Company Law Appellate Tribunal’s (NCLAT) decision, which had allowed Byju’s to settle its debts. The verdict on whether Byju’s will undergo restructuring or liquidation is still awaited.
Raveendran admitted that Byju’s is in a challenging position, stating, “We are in a position where the business needs to be restructured. The burden of debt is too heavy, and we must take decisive action to regain trust.”
Byju’s rise and subsequent fall have raised questions about its corporate governance and management practices.
Raveendran, however, reassured stakeholders that there were no intentional errors in governance. “We have not done any intentional mistake. There is no fraud, and if there was, I wouldn’t have put all my family’s money back in. We know what is inside more than anyone else,” he said.
He also admitted that the company had lost investor confidence but remained hopeful about restoring it.
“Losing investor confidence is something I never anticipated. The operational missteps have led us to this point, and it’s crucial to rebuild that trust moving forward,” he said as per the report.
Despite the financial turmoil, Raveendran said that Byju’s continues to attract users. “We have more users than any other platform, and that’s a huge responsibility. So there is no way we are running away,” he said.
However, the company’s financial situation remains dire. “At its peak, we were doing Rs 400 crore per month; right now, obviously, nothing is right. We have just kept the platforms running,” he admitted.
Looking forward, Raveendran reaffirmed his commitment to making a comeback.
“I will make a comeback. It’s not going back to a $20 billion company. The comeback is to continue my mission,” he said.