Edtech giant Byju’s, formerly India’s most valuable start-up with an estimated worth of USD 22 billion, is set to undergo insolvency proceedings due to its failure to pay Rs 158.9 crore to the Board of Control for Cricket in India (BCCI).
The National Company Law Tribunal’s Bengaluru bench has given the green light for bankruptcy proceedings against the company, appointing an interim resolution professional, suspending its board of directors, and freezing its assets. CEO Byju Raveendran will now report to the resolution professional, while Pankaj Srivastava has been named as the interim resolution professional.
Byju’s, which had previously been a sponsor of the Indian cricket team, has expressed hope for an “amicable settlement” with the BCCI. However, sources indicate that the company intends to challenge the ruling before the National Company Law Appellate Tribunal (NCLAT).
A spokesperson for Byju’s stated, “As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company’s interests.”
The company faced a significant setback when schools reopened following the easing of pandemic restrictions, causing its valuation to plummet. BlackRock recently devalued Byju’s to USD 1 billion from its earlier estimation of USD 22 billion. Byju’s encountered financial troubles after it missed reporting deadlines two years ago and fell short of revenue projections by more than 50 percent.