QIA Seeks Restraint on Byju’s Founder

Qatar Investment Authority (QIA), a significant financial backer of edtech giant Byju’s, has initiated legal proceedings against the company’s founder, Byju Raveendran. In a recent filing with the Karnataka High Court, QIA has sought a court order preventing Raveendran from disposing of, transferring, or encumbering his personal assets.

The investor is also demanding a comprehensive disclosure of Raveendran’s financial holdings, aiming to recover a substantial sum of $235.19 million.

Complex Financial Landscape

This legal action unfolds amid a series of challenges confronting Byju’s. The company is currently embroiled in insolvency proceedings initiated by the Indian cricket board and is engaged in a legal dispute with overseas lenders over a $1.2 billion loan.

QIA’s relationship with Byju’s extends beyond equity investments, as the investor provided a $250 million loan to Raveendran in 2022, which was subsequently reinvested into the company. This investment propelled Raveendran’s stake in Byju’s to over 25%.

Valuation Decline and Financial Distress

The edtech firm has encountered a steep decrease in valuation, diving from a pinnacle of $22 billion to a simple $225 million following a new rights issue. This sensational depreciation is reflected in the decreased total assets of Byju Raveendran, which has been diminished to zero as per the Forbes Tycoon List 2024.

The fight in court among QIA and Byju Raveendran highlights the mounting monetary tensions looked by the once high-flying edtech organization.