US Court Orders Byju Raveendran to Pay $1.07 Billion in Alpha Fund Dispute

Byju Raveendran, founder of edtech company Byju’s, has been ordered by a US court to pay $1.07 billion after being found liable for concealing funds linked to the company’s Alpha subsidiary. The ruling marks one of the most significant legal setbacks for the embattled entrepreneur, whose firm has been struggling with financial and governance crises.

According to court filings, lenders accused Raveendran of intentionally hiding proceeds from the sale of Byju’s US-based unit, Alpha, to avoid repaying loan obligations. The court held that the concealment was deliberate, constituting a breach of contractual agreements and triggering immediate repayment requirements.

Raveendran had earlier disputed the allegations, arguing that lenders were attempting to take control of the company through aggressive legal tactics. However, the court rejected these claims, ruling that the lenders had sufficient grounds to pursue the amount owed.

The $1.07 billion judgment adds substantial pressure to Byju’s at a time when the company is grappling with layoffs, unpaid salaries, investor disputes, and allegations of financial mismanagement. Industry analysts say the ruling may further complicate the firm’s restructuring efforts and intensify scrutiny from regulators and stakeholders.

With the company’s valuation having collapsed from $22 billion to a fraction of that, the ruling leaves Byju Raveendran facing one of the toughest chapters of his entrepreneurial journey, raising questions about the future viability of what was once India’s most celebrated edtech startup.