Byju's Founder Raveendran Sentenced To Six Months For Contempt Of Court In Singapore

Byju's Founder Raveendran has been sentenced to six months for contempt of court in Singapore court, according to a Bloomberg report. 

The Bengaluru-headquartered ed-tech company's founder was ordered to serve jail time after the court noted that he had violated multiple orders related to his assets dating back to April 2024.

The man behind what was once considered the most valuable ed-tech startup was asked to surrender, cough up $70,500, and furnish documents proving his legal ownership of Beeaar Investco Pte, a corporate entity that held shares in a related company.

The threat of jail time is the latest blow to a founder who is now facing claims from foreign investors around the world, including in the US where lenders are fighting to claw back losses from a $1.2 billion loan that soured.

Also Read: Byju's Founder Raveendran Sentenced To Six Months For Contempt Of Court

Raveendran’s rise to fame and fortune is credited to Byju's also known as Think & Learn Pvt, which made him a billionaire while his firm gained a valuation of $22 billion back in 2022. However, it all came crashing post insolvency proceeding were triggered in 2024, trimming valuation down to $2 billion.

Currently, he is being pursued in Singapore’s court system by a subsidiary of sovereign wealth fund Qatar Investment Authority, which participated in a funding round for the tech firm as it was cutting jobs and laying off staff.

Qatar Holdings was represented by Drew & Napier in the matter, while Byju’s Investments was represented by Fervent Chambers.

From Iconic Startup Founder To Contempt Of Court: What Led To Raveendran's Downfall?

In 2023, the Indian cricket board had asked a tribunal to initiate insolvency proceedings against Byju's for defaulting on $19 million of dues. The dispute concerned payments related to sponsorship rights for the Indian cricket team's jerseys.

While Byju's intended to settle the matter, a tribunal had ruled in favour of the cricket board and appointed a resolution professional to oversee the company, suspending its board of directors.

In February 2024, a group of shareholders, including tech investor Prosus, alleged "financial mismanagement and compliance issues" at Byju's and called for the removal of founder and CEO Byju Raveendran, and a reconstitution of the board.

"We are deeply concerned about the future stability of the company under its current leadership and with the current constitution of the Board," the shareholders said.

Byju's, which has denied mismanagement, says the investors don't have the power to vote out its CEO.

In June, Prosus wrote off the value of its 9.6% stake in Byju's, making the Dutch firm the first to fully write-off its investment in the troubled startup.

Earlier, Deloitte noted that it had resigned as auditor because Byju's had delayed financial statements for the year ending March 31, 2022. Deloitte stated that it did not receive necessary documents even after writing several letters to the board.

Three board members of Byju's, who were representing investors Peak XV Partners (previously Sequoia Capital India), Prosus and Chan Zuckerberg Initiative, had also stepped down.