BYJU’s founder and CEO Byju Raveendran refuted allegations labelling him a “fugitive,” calling them a part of a “pretend narrative” pushed by a coordinated media and authorized marketing campaign to wrest management of the embattled edtech firm.
In an unique interview with ANI, Raveendran alleged that sure US-based lenders had been behind efforts to tarnish the corporate’s picture. “They’ve destroyed worth for all stakeholders—buyers, workers, everybody,” he stated, accusing them of making “prejudice” in Indian courts by branding him and his brother as fugitives.
“These are narratives that they’ve created in attempting to take management of the corporate. Sadly, in an organization that’s constructed on the founders’ title, or the place the founder performed an necessary position within the early years, they miss the truth that in the event you tarnish the founder’s title, it will have a huge effect on the corporate’s valuation,” Raveendran instructed ANI.
The edtech big, as soon as valued at $22 billion, has seen its fortunes nosedive amid mounting monetary troubles, regulatory scrutiny, and ongoing authorized disputes.
In additional addressing the allegations of being labeled a “fugitive,” Raveendran emphasised that this declare was merely a part of what he known as a “malicious media marketing campaign.” He clarified that the time period was solely talked about verbally and was not included in any official documentation.
He added, “Our complete wealth and firm had been established in India. All income had been generated inside India, taxes had been paid in India, and investments had been reinvested in India.”
ED probe
Raveendran clarified that the Enforcement Directorate’s investigation into the corporate is concentrated on company issues and never on him personally. He emphasised that they’ve at all times freely traveled to India from Dubai as a base for worldwide growth, and acknowledged that the allegations are fabricated with no foundation in fact. The ED inquiry is company-related and presently on the adjudication stage, not a private difficulty.
Relating to the reported lookout circulars, Raveendran talked about that they had been leaked data and never formally disclosed by the ED. He defined that the ED doesn’t publicize such notices to take care of the integrity of their investigations, attributing any confusion to deceptive media studies.
Raveendran additionally clarified that there was no chargesheet or Prevention of Cash Laundering Act (PMLA) case towards him, solely summons to which he has cooperated.
“I’ve been touring to India like even after the ED inquiry began. To start with, if ED places out a lookout discover, they may by no means make that public as a result of that defeats the aim. It is a flawed media narrative across the ED investigation, it was by no means private. It was on the assume and study transactions, which was aside from just a few misses on the submitting timelines, there was by no means a PMLA. There was by no means a cost sheet. There have been summons, I went and met, we cooperated. Investigation is closed. So, the entire narrative was blown out of proportion,” Raveendran famous.
Hedge funds and Time period Mortgage
Raveendran blamed a gaggle of US-based hedge funds for derailing his imaginative and prescient of making one million educating jobs in India, calling them “vulture lenders” whose actions devastated the corporate and its stakeholders.
Raveendran recalled the corporate’s once-robust monetary place, instructed ANI: “Two years in the past, we had been sitting on 1000’s of crores. At this time, we have now nothing.” He added that regardless of the disaster, a number of supporters stepped in to assist increase contemporary capital. “Many good folks backed us over the previous two years — and all of them have been individually focused,” he claimed.
In response to Raveendran, the fallout was orchestrated by a handful of American entities. “It’s not a conspiracy by many. It’s actually two hedge funds — some Individuals and some Indians based mostly within the US,” he stated, accusing them of manipulating the scenario for private acquire.
Reflecting on a crucial monetary choice in 2021, Raveendran admitted the corporate’s mistake in taking a $1 billion time period mortgage regardless of having fairness choices obtainable. “We had already raised $5 billion earlier than that. It wasn’t out of desperation. It was a collective choice — however in hindsight, we shouldn’t have taken that mortgage,” he stated.
Raveendran additionally spoke about BYJU’S employment mannequin and its social influence, notably for India’s younger workforce. “We created round 40,000 educating jobs and over 2.15 lakh roles for contemporary graduates, lots of whom had mounted salaries,” he stated. “It was greater than a enterprise — it was a motion. And all of it was misplaced due to the greed of some.”