BYJU’S cofounders, Byju Raveendran and Divya Gokulnath, have alleged that a targeted campaign of intimidation has been launched against their inner circle amid the company’s ongoing troubles. In an interview with ANI, Gokulnath claimed that lawyers, senior leaders, and associates of the company have been threatened, with unknown individuals visiting their homes, attempting to create fear. She accused certain individuals of trying to isolate Raveendran by targeting those who support him, even alleging that lawyers were warned their licenses might be revoked. When asked if these threats came from within India, she confirmed they did and described the intimidation as involving “people who look like goons.”
Raveendran admitted that taking the $1.2 billion Term Loan B (TLB) in 2021, despite available equity funding, was a major mistake that triggered much of the turmoil. He acknowledged that BYJU’S expanded too quickly into 21 countries due to investor pressure, and in hindsight, a slower pace would have been wiser. He accused some TLB creditors of trying to take control of BYJU’S by attacking his reputation and manipulating public perception. He also alleged fraud involving Glas Trust (a TLB lender consortium), EY India, and Khaitan & Co.
Despite the turbulence, Raveendran defended BYJU’S acquisition of Aakash as its best, saying it offered growth into small-town India. He also recognized communication issues in the WhiteHat Jr. acquisition and described it as a missed opportunity to showcase Indian teaching talent globally.
The TLB saga began when BYJU’S borrowed $1.2 billion from 37 institutions in 2021. The company defaulted, leading to multiple legal cases across the U.S. In March, a U.S. bankruptcy court sided with the lenders, accusing BYJU’S of fraudulently transferring $533 million. The company is now dealing with lawsuits, investor clashes, layoffs, delayed salaries, regulatory scrutiny, and insolvency proceedings, posing the biggest threat to its survival.
