Byju Raveendran said there is no wrongdoing on my part after a Singapore court ordered insolvency proceedings against his edtech firm. Business Fortune reports on the founder's statement.
Byju Raveendran, the founder of embattled edtech giant Byju's, has broken his silence following a Singapore court order that placed the company's holding unit under insolvency proceedings. In his first public statement since the ruling, Raveendran asserted there is no wrongdoing on my part.
The Singapore High Court's order applies to Byju's Alpha, the overseas holding unit of Think & Learn Pvt. Ltd., which had raised billions from international investors. The court appointed an interim liquidator after lenders alleged that assets worth over $500 million had been improperly moved.
Raveendran, in a message to employees and stakeholders, expressed confidence that the issues would be resolved. He emphasized that the operational entities in India continue to function normally and that the Singapore proceedings do not directly affect day-to-day business.
Byju's was once valued at $22 billion, making it India's most valuable startup. However, the company has faced a series of setbacks over the past two years, including auditor resignations, valuation markdowns by investors, and multiple legal disputes with creditors.
The Singapore ruling marks a significant escalation in the ongoing battle between Byju's and its lenders. The creditors had sought the insolvency order after claiming that the company had defaulted on a $1.2 billion term loan. Byju's has disputed the default claims.
The founder's statement did not offer a detailed defense but signaled his intention to fight the proceedings. He reiterated his commitment to turning the company around and restoring investor confidence.
The insolvency proceedings in Singapore are separate from the ongoing corporate insolvency resolution process that has already been initiated against Byju's in India.
