The fallout from Byju's sweeping job cuts and financial collapse has deepened after founder Byju Raveendran lost his bid to overturn a six-month jail sentence in Singapore, according to Bloomberg.
The High Court of Singapore rejected Raveendran's application to halt the sentence on 9 July, effectively preventing him from returning to the city-state unless he serves the prison term. The sentence, imposed for contempt of court, was originally handed down in May before being temporarily stayed last month.
Crisis behind restructuring
The ruling marks another setback for the founder of Think & Learn Pvt, better known as Byju's, whose once high-flying edtech business underwent extensive restructuring and large-scale job cuts as it battled mounting financial pressures.
The company slashed thousands of roles as part of efforts to reduce costs, conserve cash and navigate a deepening debt and liquidity crisis triggered by rapid expansion, a default on a US$1.2 billion loan and mounting corporate governance concerns.
Court rejects appeal
Raveendran's law firm, Lazareff Le Bars, confirmed that the High Court had declined his application to suspend the sentence.
“Raveendran maintains that he did not breach any court order, intentionally or otherwise, and will continue to pursue every lawful remedy through the proper legal process,” J. Michael McNutt, a lawyer at Lazareff Le Bars, said in the statement.
Global legal battles
Raveendran continues to face legal claims from investors across multiple jurisdictions. In the United States, lenders are seeking to recover losses linked to the company's default on a US$1.2 billion term loan.
In Singapore, he is also facing legal action brought by a subsidiary of the Qatar Investment Authority, which invested in Byju's during a funding round even as the company was reducing headcount.
From unicorn to restructuring
Byju's rapidly expanded during the pandemic before its business came under intense scrutiny over governance issues, funding challenges and mounting debt.
The company's restructuring programme, including widespread layoffs, became one of the most significant workforce reductions in the edtech sector as it sought to stabilise operations amid an escalating financial crisis.