A new court filing alleges that the Indian ed-tech giant Byju’s used a UK logistics firm as part of a scheme to divert approximately $505.9 million away from U.S. lenders.
What the Allegation Says
According to a recent U.S. court filing, Byju’s (formally Think & Learn Private Ltd) is accused of routing roughly $505.9 million through a UK-based logistics company, OCI Limited, to hide the money from its U.S. lenders.
The filing states that OCI accused a former adviser of collaborating with Byju’s founder, Byju Raveendran, to transfer the funds in and out of OCI’s business “as part of a plan … to block lenders from clawing it back.”
OCI’s founder, Oliver Chapman, stated in a sworn declaration that the funds were funneled to a Singapore-based entity owned by Raveendran rather than being used for legitimate procurement of equipment and services, as claimed.
The Flow of Funds
- The money originated from a U.S. loan facility (~$1.2 billion) taken out by Byju’s Alpha, a U.S. shell entity.
- Some portion (~$505.9 million) is alleged to have been transferred to OCI Limited via the UK logistics structure.
- The funds were then reportedly “round-tripped” into a Singapore entity linked to the Byju’s founder rather than being deployed as originally stated.
Why It Matters
- Creditor Risk: The allegation that Byju’s hid $505 million raises major concerns for lenders, creditors and stakeholders seeking to recover funds.
- Legal & Reputational Impact: If proven, the case might expose Byju’s and its founder to regulatory, bankruptcy and civil litigation risks.
- Corporate Governance: The case highlights governance, transparency and cross-border fund movement risks within high-growth tech companies.
- Global Scale: Given that funds moved across India, UK, Singapore and the U.S., the case underscores how globally-connected fintech and ed-tech firms must manage multi-jurisdictional oversight.
Response & Background
Byju’s has previously denied similar allegations that it hid ~$500 million in U.S. filings, stating that transfers were compliant with contractual arrangements and used for global growth.
The latest filing also references earlier claims that Raveendran attempted to regain control of Byju’s using hidden funds, via intermediaries and offshore trusts.
Next Steps & Considerations
- The U.S. bankruptcy court overseeing Byju’s Alpha (in Delaware) may evaluate settlement proposals with OCI Limited and other parties. Bloomberg Law
- For Indian stakeholders (employees, investors, regulators), the cross-border nature of the alleged funds movement will likely trigger compliance and audit reviews.
- Analysts will watch whether this case affects Byju’s restructuring, asset sales or creditor recovery strategy.
- Investors and ed-tech observers should monitor how this impacts confidence in high-growth, debt-financed ed-tech firms.
Conclusion
The claim that Byju’s hid $505 million using a UK logistics firm marks a serious development in the company’s broader debt and restructuring saga. If verified, it will have far-reaching implications for creditors, regulators and the global ed-tech ecosystem.
