Byju’s, as soon as one in every of India’s premier EdTech startups, now faces insolvency proceedings. File
| Photograph Credit score: REUTERS
An Indian tribunal on July 16 began insolvency proceedings for EdTech agency Byju’s after the nation’s cricket board complained about failure to recuperate $19 million in dues, dealing one other blow to an organization that was as soon as India’s largest startup.
Byju’s has suffered quite a few setbacks up to now few years, resulting in a disaster of investor confidence, 1000’s of job cuts and a collapse in its valuation from $22 billion in 2022 to less than $3 billion.
Additionally learn: Byju’s woes: A timeline of the Indian edutech giant’s troubles at home and abroad
On this newest blow, the Nationwide Firm Legislation Tribunal (NCLT) stated “it can’t be disputed” that the dad or mum of Byju’s, Suppose & Be taught Non-public Restricted, had availed itself of the companies of the Board of Management for Cricket in India (BCCI) and had defaulted on roughly ₹1.59 billion.
“As we’ve at all times maintained, we want to attain an amicable settlement with BCCI and we’re assured that, regardless of this order, a settlement could be reached. Within the meantime, our attorneys are reviewing the order and can take needed steps to guard the Firm’s pursuits,” a spokesperson for Byju’s stated.
The NCLT appointed an interim decision skilled, Pankaj Srivastava, who will now oversee the administration of Byju’s. The powers of board of administrators will likely be suspended for now and relaxation with Mr. Srivastava. BCCI didn’t instantly reply to a Reuters request for remark.
