Lenders Accuse Byju's Of Hiding $500M, Seek Control Over Edtech Giant

Edtech behemoth Byju’s is being sued for allegedly hiding $500 million (₹4,138 crore) by lenders, who are also seeking control of the company to safeguard their interests.

What Happened? The lawsuit was filed in a Delaware court against Byju's Alpha, its director, Riju Ravindran, and Tangible Play Inc by creditor Glas Trust Company, Bloomberg reported. The two companies being sued are units of Think and Learn Private, controlled by Byju Raveendran.

See Also: Where And How To Buy Refurbished iPhone In India

The lenders argue that they have the right to put their representative, Timothy R. Pohl, in charge of the edtech firm because of a default earlier this year.

Byju's has been trying to restructure a $1.2 billion (₹9,926 crore) term loan when government investigators inspected company offices in April. The firm has been eyeing an IPO for its tutoring unit for several years.

The Indian firm said it was likely to receive "a large capital infusion" in about two weeks, which will allow Byju's Alpha to pay down the term loan it owes creditors, the firm’s lawyer said in court.

Read Next: Electric Two-Wheelers May Get Costlier As Government Mulls Subsidy Cut

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: RegulationsStartupsMarketsByjus
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!