Byju’s Crisis: In a significant development that has stirred fresh intrigue around BYJU’s ongoing troubles, an unidentified UAE-based woman has reportedly stepped into a funding slot that founder Byju Raveendran was expected to occupy in the Aakash Educational Services rights issue. Her entry, without any public disclosure of her identity or background, has led to her being described as a ‘mysterious’ figure in corporate circles.
According to reports, this offshore investor’s involvement has raised questions about whether she may be acting as a proxy or representing interests not formally acknowledged. However, there is no official confirmation about who she is, what her links to the company might be, or whether she has any prior association with BYJU’s.
As per the current situation, the ‘mysterious UAE woman’ remains just an undisclosed investor whose sudden appearance in a high stakes financial move has intensified speculation at a time when BYJU’s is already under heavy scrutiny.
What Problems Byju Has Been Grappling With
Byju’s, once hailed as India’s most valuable startup, is now grappling with deep financial trouble, multiple legal disputes and looming insolvency proceedings. The company’s rapid expansion, failed funding commitments, alleged diversion of funds and weak risk management have triggered a steep collapse in valuation. Adding to the crisis are boardroom clashes, auditor resignations and accusations of aggressive sales practices and governance lapses factors that have collectively pushed the edtech giant from industry darling to a company fighting to stay afloat.
A Billion Dollar Reversal
In a significant legal turnaround, a US bankruptcy court has reversed its earlier $1 billion damages ruling against Byju Raveendran after reviewing fresh submissions. The Delaware Court removed all damages assessments, ordering a new phase in January 2026 to determine any liabilities.
This comes amid a broader dispute in which creditors, including GLAS Trust, accused Raveendran and Byju’s founders of diverting $533 million from a 2021 loan allegations they strongly deny, insisting the funds were reinvested into Think & Learn for major acquisitions. Raveendran now plans further legal action, alleging GLAS Trust misled courts and contributed to Byju’s collapse, job losses, and destruction of enterprise value. He intends to present ‘clinching evidence’ in upcoming US and Indian proceedings.
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