In-Depth Analysis: The Alleged $533 Million “Round-Tripping” in Byju’s Alpha – A Breakdown of the November 2025 Delaware Court Revelations

As of November 18, 2025, the Byju’s saga has reached a new low with explosive allegations in the US Bankruptcy Court for the District of Delaware. A fresh filing by Byju’s Alpha Inc. (the Delaware-domiciled special-purpose vehicle now controlled by its Term Loan B lenders via GLAS Trust Company LLC) claims that approximately $533 million in loan proceeds – part of a $1.2 billion Term Loan B raised in November 2021 – was not used for legitimate business purposes but was instead “round-tripped” (clandestinely diverted and routed back) to founder Byju Raveendran personally and his affiliates for potential personal enrichment.

This accusation directly contradicts a sworn declaration Raveendran submitted in 2024, escalating what was already one of India’s most high-profile corporate governance scandals. Below is a comprehensive, neutral analysis based on the court filings, sworn testimonies, and public responses.

1. Background: The $1.2 Billion Term Loan B and the “Missing” Funds

• In November 2021, Byju’s (via its Indian parent Think & Learn Pvt Ltd) raised $1.2 billion through a syndicated Term Loan B (TLB) facility, primarily from US-based hedge funds and institutional lenders.
• The loan was channeled through Byju’s Alpha Inc., a Delaware-incorporated SPV created specifically to receive and manage the proceeds. The funds were intended for global expansion, acquisitions, marketing, and operational needs (e.g., procuring IT equipment/tablets and advertising).
• By mid-2023, after defaults on interest payments, lenders accused Byju’s of breaching covenants. A key issue: roughly $533 million (after some expenditures) became untraceable or “missing.”
• In November 2023, the Delaware court allowed lenders (via GLAS Trust) to take control of Byju’s Alpha.
• Earlier rulings (2024–2025) labeled transfers to an intermediary (Camshaft Capital, run by a 23-year-old) as potentially fraudulent. Byju’s Alpha sued multiple parties, including Raveendran, his family, and intermediaries, to claw back funds.

2. The Alleged Round-Tripping Mechanism: Step-by-Step Flow of Funds (Per Oliver Chapman’s Sworn Declaration)

The bombshell evidence comes from a sworn declaration by Oliver Chapman, CEO of UK-based OCI Limited (a procurement and supply-chain firm). This was submitted as part of a proposed settlement between Byju’s Alpha and OCI (under which Alpha drops claims against OCI in exchange for Chapman’s cooperation and transparency). Chapman’s declaration allegedly “itemizes down to the cent” what happened after the money left Byju’s Alpha in 2022.

• Key Role of Rupin Banker: A former OCI executive, accused of acting as Raveendran’s direct point of contact. The filing claims Banker (along with Raveendran) “abused OCI to facilitate a fraud on the Debtor and its creditors.”
• Contradiction with Raveendran’s 2024 Sworn Statement: In fall 2024, Raveendran declared under oath that the transfers to OCI were for “legitimate commercial purposes” (e.g., IT equipment and marketing) and that “neither I, nor any of the founders… have personally received any portion of the Alpha Funds.”
• The new filing calls this a “plot to siphon hundreds of millions for personal use,” labeling the transfers “clandestine” and “opaque.”

3. Why Is OCI’s Oliver Chapman Cooperating Now?

• Byju’s Alpha sued OCI and Rupin Banker in May 2025 to recover the funds.
• As part of the November 2025 settlement, OCI avoids liability, discontinues defense, and provides Chapman’s full cooperation (including the detailed declaration).
• Chapman reportedly had limited direct visibility earlier but gained full access during litigation/settlement preparations, leading to his “cent-by-cent” tracing.

4. Byju Raveendran & Founders’ Response (November 17–18, 2025 Statement)

The founders (Byju Raveendran, Divya Gokulnath, Riju Raveendran) issued a strong rebuttal:

• Categorically reject all allegations of wrongdoing or personal diversion.
• 100% of the $533 million was used exclusively for the benefit of Think & Learn Pvt Ltd (the Indian parent), with full bank statements and documentation available.
• GLAS Trust and the Indian Resolution Professional already have access to these records but are “deliberately presenting partial/context-stripped extracts” to damage reputations.
• Oliver Chapman’s declaration is “selective, incomplete, full of conjectures and insinuations,” based on limited knowledge (he was not directly involved in many transactions).
• Promised an imminent rebuttal filing in Delaware with “evidence rebutting each assertion.”
• Threatened defamation and potential racketeering (RICO) claims against GLAS Trust and others.

Quote from founders’ statement: “No portion of the $533 million in question has been used by the founders directly or indirectly… GLAS Trust’s latest filing relies heavily on a selective and incomplete declaration submitted by Mr. Oliver Chapman… does not substantiate any claim of wrongdoing.”

5. Implications and Broader Context

• Legal: This strengthens lenders’ clawback efforts. If proven, it could lead to personal liability for Raveendran (already in civil contempt in July 2025 for non-compliance with discovery orders), fraud findings, and blocked settlements in India’s parallel insolvency case.
• Financial: Byju’s parent is in CIRP (insolvency) in India; any proven misappropriation could torpedo revival plans or bids (e.g., from UpGrad, Manipal).
• Governance Red Flags: Highlights use of offshore SPVs, opaque intermediaries (Camshaft, Revere), and related-party entities (Byju’s Global Pte Ltd owned personally by Raveendran).
• Precedent: Echoes global cases (e.g., Wirecard, Theranos) where high-valuation unicorns collapsed amid fraud allegations.

6. What Happens Next?

• Delaware court to rule on the Alpha–OCI settlement (likely approved given the cooperation).
• Founders’ rebuttal filing expected imminently.
• Ongoing adversary proceedings against Raveendran, Banker, and others.
• No criminal charges yet (civil bankruptcy), but ED/SFIO probes in India could intensify.

This remains an allegation under active litigation – the full truth will emerge as evidence is tested in court. As of November 18, 2025, no new docket updates beyond the November 15–17 filings, but the case is moving fast. The $533 million mystery, long a black box, now has a detailed (if contested) map pointing straight back to the founder.