Byju Raveendran, founder of BYJU’S, has proposed handing over his beneficial interest in 17.89 million shares of Aakash Educational Services to settle a $235 million arbitration claim by Qatar Holding. The shares represent about 5.7% of Aakash’s equity and are held through Beeaar Investco Pte, a Singapore-based entity. This offer aims to resolve the dispute stemming from a financing agreement breakdown, according to inc42.com.
The 17.89 million shares were acquired in 2022 using $150 million financing provided by Qatar Holding, a subsidiary of Qatar Investment Authority, to Raveendran’s investment vehicle, Byju’s Investments Pte Ltd (BIPL). Raveendran personally guaranteed this financing. Qatar Holding terminated the agreement after alleging breaches and defaults by BIPL, demanding over $235 million including early termination fees and penalties. The fund continues to pursue repayment and enforcement of the arbitral award, per inc42.com.
This settlement proposal comes amid a broader dispute involving the transfer of Aakash shares to Beeaar Investco, which Qatar Holding claims is beneficially owned by Raveendran. The financing deal’s collapse highlights challenges in the edtech sector’s funding arrangements and the risks tied to personal guarantees by founders. The claim is one of the largest arbitration disputes involving BYJU’S founder and reflects tensions between private equity investors and startup founders in India’s education technology space, according to inc42.com.
Inc42.com reports that Qatar Investment Authority has yet to comment on the development. Byju Raveendran could not be reached for comment despite repeated attempts. The story is ongoing, with Qatar Holding maintaining efforts to enforce the arbitral award and recover the claimed amount.