In yet another dramatic twist in the saga of India’s most talked-about edtech firm, BYJU’S founders — Byju Raveendran and Divya Gokulnath — have announced plans to file a massive lawsuit exceeding USD 2.5 billion against Glas Trust Company and others. The legal action, which will unfold in India and multiple international jurisdictions, aims to seek compensation for what the founders allege is severe damage to their personal reputations and business interests, particularly their flagship venture, Think & Learn Pvt Ltd, which owns the BYJU’S brand.
This revelation comes at a time when Think & Learn is already under immense pressure, being dragged into insolvency proceedings by US-based lenders led by Glas Trust.
Credits: Hindustan Times
“Improper Conduct” and Damage Claims
The strong-worded statement, issued by J Michael McNutt of Lazareff Le Bars Eurl, the senior litigation advisor for the founders, accuses Glas Trust and other involved parties of engaging in “reprehensible and improper” conduct during court proceedings. The counsel emphasized that the founders are preparing to use every legal means available to seek justice.
“BYJU’s founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses,” said McNutt.
According to the legal team, claims have already been filed in India against Glas Trust, which the founders allege is improperly exercising control over a former subsidiary of Think & Learn. More lawsuits are being prepared in foreign jurisdictions, and the expected monetary demand is pegged at no less than USD 2.5 billion.
The Larger Battle: Insolvency and Ownership
This legal maneuvering is set against the backdrop of a fierce financial and legal battle. BYJU’S parent company Think & Learn Pvt Ltd is currently undergoing insolvency proceedings, triggered by a petition from its creditors, including Glas Trust.
Glas Trust is the lender representative for a group of US-based investors who financed a term loan worth over USD 1.2 billion to BYJU’S in 2021 — one of the largest overseas borrowings by an Indian startup. However, the relationship between the company and the lenders soured in 2023 after repeated defaults, delayed filings, and allegations of financial mismanagement.
The lenders claim that Think & Learn has breached multiple terms of the loan agreement, while BYJU’S has maintained that the lenders are attempting a hostile takeover of its assets through backdoor tactics.
A Battle for Reputation and Control
This lawsuit represents more than just a financial demand — it’s a fight for reputation, legacy, and survival. For Byju Raveendran and Divya Gokulnath, once celebrated as India’s startup power couple, the case is a bid to reclaim credibility at a time when BYJU’S has seen its valuation plummet, workforce shrink by thousands, and investor confidence hit rock bottom.
From a peak valuation of $22 billion, BYJU’S is now a cautionary tale in India’s startup ecosystem. The founders’ lawsuit could be an attempt to regain narrative control and send a message that they will not back down without a fight.
Credits: The Economic Times
What’s Next?
While the legal dust is far from settling, this case could have wide-ranging implications — not just for BYJU’S, but also for the way international lenders deal with Indian startups going forward. It also raises questions about jurisdictional authority, cross-border enforcement, and the role of investor activism.
As the insolvency case proceeds in India and fresh lawsuits are filed abroad, the world will be watching how this multi-billion-dollar battle unfolds — a saga that may determine the future of India’s most well-known edtech brand.
In conclusion, what started as a meteoric rise in the startup world has spiraled into a legal and financial thriller. Whether this $2.5 billion suit leads to redemption or further ruin remains to be seen. But one thing is clear — BYJU’S is far from finished fighting.
