BYJU'S in hot water over $533 million fund diversion claims
BYJU'S, once a star in edtech, is now under legal spotlight for allegedly moving $533 million from a big loan to places it wasn't meant to go.
The money, supposed to help the company grow globally, was reportedly sent by BYJU'S Alpha (a special vehicle set up by founder BYJU Raveendran) through OCI to BYJU'S Global Pte Ltd owned by Raveendran instead.
OCI's CEO Oliver Chapman has called out this diversion.
What else is going on?
Raveendran insists nothing shady happened and says Glas Trust—the group handling BYJU'S US lenders—knows exactly where the money went.
Meanwhile, creditors have taken control of BYJU'S Alpha and are battling OCI in court.
On top of that, BYJU'S parent company TLPL is facing insolvency because of unpaid dues to BCCI, leading to asset sales like Aakash coaching and drawing interest from companies like Upgrad and Manipal Group.
It's a tough time for the edtech giant as it tries to sort out its finances and reputation.