Byju’s, which operates in additional than 21 nations, grew to become common throughout COVID-19 pandemic
New Delhi:
Insolvency proceedings in opposition to ed-tech large Byju’s, as soon as India’s greatest startup valued at $22 billion, will doubtless drive 1000’s of staff to give up and lead to a complete shutdown of its providers, its CEO mentioned in a court docket submitting seen by Reuters.
Byju’s, backed by buyers like Prosus and Common Atlantic, has suffered quite a few setbacks in current months, together with job cuts, a collapse in its valuation and a tussle with buyers who accused CEO Byju Raveendran of company governance lapses. Byju’s has denied any wrongdoing.
Now Byju’s is dealing with its greatest disaster after a tribunal this week triggered insolvency proceedings following a criticism by the nation’s cricket board over an impressive cost of $19 million associated to a sponsorship deal. Byju’s property have been frozen and its board has been suspended.
The insolvency course of will doubtless trigger distributors who present vital providers to Byju’s for the maintenance of on-line platforms to declare a default, “resulting in a complete shutdown of providers” and bringing the operation to “a grinding halt,” Mr Raveendran mentioned in a court docket attraction looking for to quash the insolvency course of.
The 452-page submitting on the Karnataka Excessive Court docket, made by Mr Raveendran’s lawyer MZM Authorized, is just not public however has been reviewed by Reuters, and particulars the attainable enterprise impression on the corporate for the primary time.
The court docket will hear the case on Monday.
Byju’s and Mr Raveendran didn’t reply to Reuters queries.
Byju’s, which operates in additional than 21 nations, grew to become common in the course of the COVID-19 pandemic by providing on-line programs. It additionally provides in-person teaching lessons.
The corporate’s staff “shall undergo … and could also be pressured to go away the organisation,” the submitting added, saying Mr Raveendran was keen to pay the excellent dues to the Indian cricket board inside 90 days.
Byju’s has round 27,000 staff, together with 16,000 lecturers.
