Byju’s, once the largest startup in India, is facing insolvency procedures.

17/7/2024,

Due to its inability to pay $19 million in arrears to the Indian cricket board, the ed-tech business Byju’s once the largest startup in the country, valued at $22 billion will face insolvency proceedings, a tribunal announced on Tuesday.

Through employment layoffs, a decline in the company’s valuation to less than $3 billion, boardroom exits, a battle with investors accusing CEO Byju Raveendran of corporate governance violations and more, Byju has faced many obstacles in recent years. Byju’s has refuted any misconduct.

Insolvency procedures were started on Tuesday by a decision made by India’s corporations tribunal in response to a complaint filed by the Board of Control for Cricket in India (BCCI).

Among these will be the hiring of Pankaj Srivastava, a specialist in interim resolution, to supervise Byju’s management while the company’s board of directors is legally suspended.

The company’s assets will stay frozen while the proceedings are ongoing, and CEO Raveendran will report to the resolution professional.

“We are confident that, despite this order, a settlement can be reached,” stated Byju in a statement expressing its desire to “reach an amicable settlement with BCCI.”

It further stated that the company’s solicitors are examining the order and would take the required actions to safeguard the company’s interests.

Byju’s, a company with operations in more than 21 countries, gained notoriety during the COVID-19 pandemic by providing online education courses. It provides offline coaching classes as well.

Several Byju’s investors, including Prosus and Peak XV, voted to remove Raveendran in February, and opened a new tab; Byju’s has deemed this action to be invalid.

In its ruling, the businesses tribunal declared that “it cannot be disputed” that Byju’s parent company, Think & Learn Private Limited, had used the BCCI’s services and had fallen behind on payments totalling about $19 million.

Byju’s controlling owners have two options, according to Delhi-based attorney Bishwajit Dubey: they can either swiftly resolve their disagreement with the cricket board or file a formal appeal against the insolvency initiation.

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