Ronnie Screwvala-led UpGrad has formally joined the race to acquire Byju’s parent entity, Think & Learn, thus confirming the second bid after Ranjan Pai’s Manipal Education and Medical Group. The latest development comes amid the ongoing Byju’s insolvency process. There is fresh scrutiny in the light of serious allegations surrounding the missing $533 million from Byju’s Alpha, made in a Delaware court this week.
A serious allegation has cropped up in the United States. According to a new filing in the Delaware bankruptcy court, most of the missing $533 million related to Byju’s Alpha was ‘round-tripped’ to founder Byju Raveendran and associated entities. Byju’s Alpha was a special-purpose vehicle that raised the aforementioned Term Loan B.
The claim relies on a sworn declaration by Oliver Chapman, the founder of UK-based OCI, which had received the bulk of the cash in dispute. According to the filing, Chapman's review shows the money ended up with a Singapore-based company identified as Byju's Global Pte, allegedly owned by Raveendran. The filing now states that the founder's earlier sworn claims were misleading, as they indicated that the funds were used for IT procurement and marketing services.
Following the explosive accusations, the founders of Think & Learn issued a strong rebuttal and called the claims ‘false, selective, and misleading.’ They maintained that not a single dollar of the $533 million was diverted for personal use and stated that all expenses were legitimate and documented.
They accused GLAS Trust and the RP of selectively presenting extracts of financial data while having full access to the company's records. They also unveiled plans for defamation proceedings against parties involved in spreading what they termed ‘prejudicial narratives.’
UpGrad bids for acquiring the company, but it is primarily eyeing higher education and upskilling verticals at Think & Learn, mainly Great Learning. The company also said it was not looking to venture into the K–12 segment Byju’s was known for. The company’s CEO said in a statement to Moneycontrol that UpGrad will look at all assets under insolvency, including those that may have been transferred or sold without adequate compliance. He said the company would follow due process under the oversight of EY, the appointed RP.
Manipal Group, too, filed its bid earlier this week. The move was largely driven by its significant stake in Aakash Educational Services, the test-prep brand once controlled by Byju's before its stake was diluted. With two bidders in the game, the current process could result in multiple buyers for different business units or a consolidated acquisition if there is a compelling, holistic bid.
The Resolution Professional will publish a provisional list of eligible bidders to invite detailed resolution plans. As insolvency proceedings heat up and controversies over legal interpretations mount, the fate of Byju's parent now depends upon courtroom developments. It has a strategic interest for prospective bidders like UpGrad and Manipal Group.
Also Read: Byju’s Faces Bankruptcy: What Went Wrong for India’s EdTech Giant?