Qatar Investment Authority has approached the Karnataka High Court to compel embattled BYJU’S founder Byju Raveendran to disclose and block the transfer of his personal assets
The wealth fund aims to claim up to $235.19 Mn of Raveendran’s personal assets
QIA had previously invested in BYJU’S in 2019 and 2022 and loaned Raveendran around $250 Mn in March 2022
Qatar Investment Authority, the sovereign wealth fund of the Middle Eastern nation, has approached the Karnataka High Court to compel embattled edtech startup BYJU’S
founder and CEO Byju Raveendran to disclose and block the transfer of his personal assets.
QIA has requested the court to prevent Raveendran from selling, pledging, or transferring his assets. The wealth fund aims to claim up to $235.19 Mn of Raveendran’s personal assets, as per Mint’s report, citing court documents.
In 2019, the sovereign wealth fund first pumped $150 Mn into BYJU’S and made its second investment in the edtech startup’s $250 Mn funding round, along with other existing backers in 2022.
This comes at a time when the founder of the troubled edtech startup said that the insolvency proceedings initiated against the startup will likely “force” thousands of its employees to resign.
As per a 452-page filing before the Karnataka High Court, accessed by Reuters, Raveendran said that the move will also result in a “total shutdown” of the edtech startup’s operations.
This comes at a time when BYJU’S is trying to douse fires on multiple fronts, including a looming debt crisis, a public spat with investors, a cash crunch, mounting losses, mass layoffs, and salary delays.
Earlier last week, Inc42 reported that the company has been locked out of its more than 100 BYJU’S Tuition Centre (BTC) across the country over unpaid rent and other utility bills. This has deepened the crisis at BYJU’S, which has already been struggling to pay the salaries of its employees.
BYJU’S net loss surged 81% YoY to INR 8,245.2 Cr (close to $1 Bn) in FY22 as WhiteHat Jr and other loss-making acquisitions continued to weigh down the bottom line. In FY22, the startup’s total expenses nearly doubled to INR 13,668 Cr.
