Byju's Spectacular Collapse Ends in US Court Sanctions
Lenders accuse Byju's founder of siphoning $533M from a $1.2B loan as the edtech giant's downfall deepens.
Indian edtech startup Byju's has gone from darling to disaster. The company's dramatic collapse has now triggered US court sanctions, marking one of the ugliest implosions in recent startup history.
Lenders are accusing founder Byju Raveendran of siphoning off $533 million from a $1.2 billion loan. That's nearly half the total loan amount allegedly redirected under his watch.
The fallout isn't just a corporate meltdown — it's casting a long shadow over India's broader tech sector. What was previously a flagship edtech success story has become a cautionary tale about governance, accountability, and where massive venture-backed capital actually ends up.
US courts stepping in with sanctions signals this saga is far from over. The legal battle is heating up, and the numbers involved are staggering.