BYJU’S Term B lenders sues Byju Raveendran, Divya Gokulnath over alleged ‘fraudulent transfer’ of $533 mn

BYJU’s Alpha Inc lawsuit alleges founders hid and misappropriated $533 million in loan proceeds, facing bankruptcy in India and US.
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BYJU’s Alpha Inc, a Delaware special purpose financing vehicle established by BYJU’S to receive proceeds of a $1.5 billion Term Loan B, has filed a lawsuit alleging that founder Byju Raveendran, co-founder Divya Gokulnath, and advisor Anita Kishore orchestrated and carried out a scheme to hide and misappropriate $533 million in loan proceeds.

The lawsuit states that each of them co-orchestrated and executed a lawless scheme to conceal and steal $533 million of loan proceeds (the “Alpha Funds”).

The lawsuit is after the February 28 ruling that found Riju Ravindran, BYJU’S, and Camshaft Fund to have committed multiple fraudulent transfers and conversions of $533 million in loan proceeds, and that Ravindran breached his fiduciary duties as a director of BYJU’S Alpha.

The ad hoc group of term loan lenders of BYJU’s Alpha’s Term Loans stated, “On the heels of the Delaware Bankruptcy Court’s recent judgement against his brother and companies, this action is being brought to now hold Byju Raveendran, the former CEO of BYJU’s Alpha, and two more of his co-conspirators – namely his co-founder and close business associate – accountable for their roles in masterminding the theft of more than half a billion dollars.”

“It is clear that Byju, Divya, and Anita deliberately hid the assets of BYJU’s Alpha and repeatedly were deceptive about the location of the money in order to steal funds rightfully owed to the lenders. In light of the court’s recent decision, there can be no doubt that they acted unlawfully and tried to cover their tracks, breaching fiduciary duties and making numerous misrepresentations, among other misconduct, in the process. If it is not abundantly clear to them by now, Byju and his cohorts will soon learn that the laws of the United States are immutable, and they can either choose to live the rest of their days as international fugitives or face the music and return the money they stole.”

In March 2022, BYJU’S Alpha defaulted on its credit agreement shortly after receiving the term loans, and BYJU’S, along with Raveendran and Ravindran, allegedly began a series of fraudulent transfers and later acknowledged the defaults through multiple amendments and forbearances. BYJU’S, once hailed as India’s most valuable startup, is now facing bankruptcy proceedings in both India and the US.

Published on April 10, 2025