Upgrad's Ronnie Screwvala jabs Byju's over US lawsuit: 'Not even Netflix or HBO...'

Upgrad co-founder Ronnie Screwvala has taken a swipe at Byju's over a controversial lawsuit that has recently come to light. The news, shared on Twitter by Madhav Chanchani, co-founder of tech news portal The Arc, reveals that Byju's is currently embroiled in a legal battle against term loan B (TLB) lenders in the New York Supreme Court.

The edtech giant alleges "predatory tactics" and has declared that it will withhold any payments to the TLB lenders until the dispute is resolved. Specifically, the focus of the dispute centres around hedge fund Redwood, which Byju's accuses of purchasing its distressed debt with the sole intent of profiting significantly from it. Notably, Byju's debt has been trading at 79 cents on the dollar, adding further complexity to the situation.

In response to Chanchani's tweet, Screwvala took to Twitter to hit out at the company. His tweet read, "Drama with ZERO Content... not even a Netflix or HBO will buy it. While sullying India's name as a great investment destination! Wonder what its erstwhile Board thinks of their fiduciary duties - just asking."
Screwvala's comment underscores the growing dissatisfaction surrounding Byju's legal dispute as he raised concerns about the potential impact on India's reputation as an attractive investment hub.

One user, in the comments, had a question, left answered: “With the exception of Sequoia India and Chan Zuckerberg Initiative, the board is all family. My question is how does a company ‘disqualify’ its lender!”