Ahead of Diwali celebrations, the founder of education tech startup Byju’s has a crackle and a fizzle in his hands. Byju Raveendran failed ignominiously after a good start. On Friday, November 10, 2023, during the wee hours, a report claimed that the education giant platform Byju is likely to lose control over Alpha, its special unit which was formed for financing purposes. Later the same day, a judge in Delaware directed that lenders to education technology startup Byju’s had cited a default on a $1.2 billion loan. Yes, you heard it right, the eponymous founder of Byju’s has been replaced by lenders. You are asked to stick with this page and delve deep into the column for more details. Swipe down the page.
On Friday, November 10, 2023, the founder of Byju’s Byju Raveendran faced the fizzle and came to the crackle. Byju lost its unit in the US as the Delaware court directed that the lenders of the education giant had properly cited a default on a $1.2 billion loan which allowed the lenders including Silver Point Capital LP and Redwood Investments LLC to replace Riju Raveendran who is the brother of Byju Raveendran, from the board of Alpha.
A few hours later another big news came up that the chairman of Manipal Education and Medical Group, Ranjan Pai has reportedly stepped in with a Rs 1400 crore deal to buy out the debt investment of Davidson Kempner in Byju’s. Yes, Ranjan Pai is a new ally of Byju’s as he entered the education tech with a deal of Rs 1400 crore. For the unversed, Byju’s took a loan of Rs 2,000 crore from Davidson Kempner this year in May. Davidson Kempner is an investment management firm that was linked to Aakash Educational Services Ltd, Byju’s subsidiary.
People familiar with the development said Ranjan Pai invested in AESL and will the education tech repay the loan from Davidson Kempner? Pai is partnering with Byju Raveendran in steering the tutorial chain forward,” Byju has been at loggerheads with investors in the United States. They accused it of infringing contracts. Byju refused to make an interest payment of $ 40 million in June and, on the same day, said in a New York court that the lenders were manufacturing a fake debt crisis. Currently, Byju’s is plunging with lenders who are marking down their holdings. Stay tuned to this website.