Qatar’s sovereign wealth fund, through subsidiary Qatar Holding LLC, has moved the Karnataka High Court to recover $235 million from edtech entrepreneur Byju Raveendran and his investment vehicle, Byju’s Investments (BIPL). The petition seeks enforcement of a Singapore arbitration award and attachment of Raveendran’s assets in India.
Loan and Personal Guarantee
The dispute stems from a $150 million loan extended by Qatar Holding in September 2022 to BIPL, guaranteed personally by Raveendran. The financing was used to acquire nearly 17.9 million shares of Aakash Educational Services, with restrictions against transferring them. According to Qatar Holding, those shares were later moved to a Singapore entity under Raveendran’s control, violating the agreement.
Default and Demand
Following repeated payment defaults, Qatar Holding terminated the arrangement and demanded repayment of $235 million, including principal, penalties, and accrued interest. The sovereign fund is also claiming 4% annual interest compounded daily since February 28, 2024, which has already exceeded $14 million.
Global Freezing Order
In March 2024, Qatar Holding initiated arbitration in Singapore. An emergency arbitrator imposed a worldwide freezing order on Raveendran’s and BIPL’s assets worth up to $235 million. The Singapore High Court upheld the order. In July, the tribunal issued a final award directing immediate repayment with interest, bringing the total due to more than $249 million (₹2,183 crore).
Enforcement in India
On August 12, Qatar Holding filed an enforcement petition in Karnataka High Court. It has requested recognition of the arbitral award as a court decree, an injunction preventing asset transfers, and attachment or sale of movable and immovable assets belonging to Raveendran or BIPL in India.
Mounting Legal Troubles
The Indian enforcement action adds to Raveendran’s widening global disputes. In the US, he has reportedly been held in contempt of court in bankruptcy proceedings and ordered to pay $10,000 a day until disclosures are made. Reports claim $533 million is missing from a $1.2 billion loan taken by a Think & Learn subsidiary.
Byju’s in Crisis
Once valued at $22 billion, Byju’s is now under insolvency proceedings after defaulting on $1 billion owed to US lenders. Stakeholders have blamed senior-level mismanagement for the collapse. Public filings cite Raveendran’s defiant comments, including claims that missing funds are “somewhere the lenders will never find.”
Broader Implications
For Qatar Holding, the enforcement bid is part of a global push to recover its dues. For India’s startup ecosystem, the case highlights the unraveling of its most celebrated unicorn, now facing legal battles across jurisdictions. Raveendran insists he will rebuild the company “from scratch, brick by brick,” even as creditors tighten their grip.
