In a stunning development that could shake India’s edtech industry to its core, Byju’s Alpha Inc., the US-based financing arm of edtech unicorn BYJU’S, has filed a massive lawsuit against its own parent company. The US arm has accused founder Byju Raveendran, his wife Divya Gokulnath, his brother Riju Ravindran, and top aide Anita Kishore of orchestrating a $533 million theft.
The lawsuit, filed in the US Bankruptcy Court for the District of Delaware, paints a picture of corporate betrayal and financial manipulation. According to Byju’s Alpha, the accused devised a "web of deception" to fraudulently transfer loan proceeds, misrepresent financial data, and prevent lenders from recovering funds.
These funds—referred to as the Alpha Funds—stemmed from a $1.5 billion term loan that was supposed to be handled transparently through Byju’s Alpha. But instead, the lawsuit claims, the money was deliberately hidden and siphoned away, leaving lenders in the dark.
Alpha isn’t holding back—it’s demanding damages for breach of fiduciary duty, a full accounting of the funds, penalties for aiding and abetting, civil conspiracy, and reimbursement for legal and interest costs.
Once hailed as India’s most valuable startup and a global edtech success story, BYJU’S now finds itself battling severe credibility issues. The allegations could lead to major consequences—not just legally, but also for investor trust, international partnerships, and its future in global education markets.
