Byju's accused of breaching loan terms, share sale restricted by arbitrator

An Indian ed-tech startup, Byju’s, is facing fresh challenges as it grapples with allegations of breaching loan agreements worth $42 million, according to a confidential order seen by Reuters.

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The company, once valued at $22 billion, has encountered a series of setbacks, including regulatory probes and management controversies, leading to a significant decline in its valuation to approximately $250 million.

MEMG Family Office, led by Indian billionaire doctor Ranjan Pai, initiated arbitration proceedings against Byju’s in March, alleging non-repayment of loans totalling $42 million. The dispute revolves around the failure to transfer certain shares of a Byju’s group company, Aakash Education, as per the pre-agreed terms.

An arbitrator, appointed under Singapore International Arbitration Centre rules, has issued an order prohibiting Byju’s from selling 4 million shares of Aakash Education, equivalent to a 6% stake based on last year’s agreement. The arbitrator’s order indicates a case of breach of the loan agreement, according to the April 4 order, as reported by Reuters.