Founders of BYJU'S Pursuing $2.5 Billion in Compensation
In a dramatic turn of events, the founders of the edtech giant BYJU'S, Byju Raveendran and Divya Gokulnath, are taking aggressive legal action against parties they accuse of causing reputational and financial harm. The founders, who are based in Bengaluru, are preparing to file claims seeking at least $2.5 billion in monetary damages across multiple jurisdictions, including India and overseas courts.
The legal actions stem from ongoing disputes involving allegations by Glas Trust and related parties against the founders for allegedly diverting $533 million of loan proceeds from BYJU'S Alpha, a US-based subsidiary currently under bankruptcy proceedings.
The founders allege that they have suffered personal and corporate damages as a result of what they characterize as "reprehensible and improper" conduct by Glas Trust and others in court proceedings, prompting them to initiate these substantial legal actions.
One of the key aspects of these legal claims is a Delaware court case initiated by a Glas Trust-controlled entity, where Byju Raveendran and Divya Gokulnath are defending themselves. The US court issued a civil contempt order on July 7, 2025, against Byju Raveendran for not complying with document-sharing requests. This order is being challenged by the founders due to overlap with matters already before Indian courts.
The lawsuits will be pursued in multiple jurisdictions, with some claims already filed in Indian courts and others being prepared for foreign courts, reflecting a global legal strategy to seek at least $2.5 billion in damages.
In contrast to the ongoing insolvency proceedings against Think & Learn Pvt. Ltd., BYJU'S parent company, the founders are disputing the legitimacy and potential conflicts involved in this insolvency proceeding. It is important to note that no court in any jurisdiction, including India or the US, has ordered the founders to pay any amount to Think & Learn or related entities as of now. The founders deny all allegations against them vigorously.
The total funding for BYJU'S stands at $6.0 billion, and the sector in which it operates is Edtech. The founders reserve the right to bring actions against parties that have caused damage to them personally and their businesses. RP Ajmera, the resolution professional, has filed a lawsuit before the National Company Law Tribunal (NCLT) against Raveendran, his brother Riju Ravindran, and Gokulnath for allegedly transferring the company assets.
BYJU'S Alpha, the US-based subsidiary of BYJU'S, is currently taken over by lenders. The counsel for the cofounders, Byju Raveendran and Divya Gokulnath, stated that they are preparing "additional claims" against unspecified parties in other jurisdictions. J Michael McNutt, senior litigation advisor at Lazareff Le Bars Eurl, made the statements on behalf of the cofounders.
The edtech company BYJU'S, founded in 2011, has received a total funding of $6.0 billion. The headquarter city of BYJU'S is Bengaluru. Raveendran was also recently held in civil contempt by a US bankruptcy court for failing to appear before it and submitting evidence on time, and he has been ordered to pay a fine of $10,000 for each day he remains in contempt of the court's orders.
As the legal proceedings continue, it remains to be seen how these developments will impact the future of BYJU'S and the Edtech industry as a whole.
- The legal actions instigated by Byju Raveendran and Divya Gokulnath, who are founders of the edtech giant BYJU'S, aim to recover at least $2.5 billion in damages, as they allege financial harm caused by Glas Trust and related parties in business dealings with BYJU'S Alpha, their US-based subsidiary.
- As part of their global legal strategy, the founders plan to bring additional claims against unspecified parties in various foreign courts, seeking compensation for the reputational and financial damage they have incurred in their business dealings.
