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Byju’s, Once Valued at $22 Billion, Faces Insolvency Proceedings

Indian tribunal initiates insolvency process following BCCI's petition to recover $19 million, escalating Byju’s ongoing crises.

18 July 2024

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Savleen Kaur

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  • An Indian tribunal has started insolvency proceedings for Byju’s, installing an interim resolution professional to manage operations.

  • The tribunal's ruling came in response to BCCI's petition to recover nearly $19 million from Byju’s, a former sponsor of the Indian cricket team.

  • Byju’s has faced multiple crises, including missed financial deadlines, governance issues, investor conflicts, and a significant devaluation of the company.

An Indian tribunal court has initiated insolvency proceedings for Byju’s, once India's most valuable startup, following a petition from the country's cricket board (BCCI). This decision installs an interim resolution professional to manage the company’s operations, effectively sidelining the startup’s founder.


The National Company Law Tribunal’s ruling responded to BCCI's petition to recover nearly $19 million from the Bengaluru-based edtech startup, which previously sponsored the Indian cricket team. The tribunal has now invited creditors, employees, and vendors to file claims against Byju’s, stating that the existence and default of the debt were clearly established.


Byju’s has expressed its intention to appeal the decision and hopes to reach an amicable settlement with BCCI. A spokesperson for Byju’s mentioned that their lawyers are reviewing the order and will take necessary steps to protect the company’s interests.

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This court order adds to a series of crises that have plagued Byju’s over the past two years. The company's troubles became apparent when it missed financial reporting deadlines and fell short of revenue projections by more than 50%, leading to a cascade of governance issues.


Top investors, including Prosus and Peak XV, have accused Byju’s of governance problems and are legally fighting to remove its founder, Byju Raveendran. The startup's board members and auditor resigned in protest last year, further destabilizing the company.


The conflict with the investor group, which includes Sofina and the Chan Zuckerberg Initiative, intensified earlier this year after Byju’s reduced its valuation to just $25 million to raise capital via a rights issue. A recent court order has restrained Byju’s from proceeding with a second rights issue. Additionally, BlackRock, a minority investor, has written down the value of its investment in Byju’s to zero.

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