Byju’s, the edtech giant once celebrated as a unicorn with a valuation of $220 billion, is now navigating through a storm of insolvency issues, with potential for the promoters losing management of the company.
In the latest instance, India’s insolvency court, The National Company Law Tribunal (NCLT), has admitted Think and Learn Pvt. Ltd., the parent company of Byju’s, into the insolvency resolution process.
The Tribunal’s decision follows a petition filed by India’s cricket body BCCI (Board of Control for Cricket in India) for the edtech defaulting on dues of about $19.14 million (INR 1.6 billion).
The Bengaluru bench of NCLT on Tuesday admitted BCCI’s petition seeking insolvency proceedings against Byju’s.
The case pertains to the dispute around the sponsorship rights of the Indian cricket team’s jerseys.
It was on November 15 that the bankruptcy tribunal registered the matter for further hearing. The edtech firm had then said it was in talks with BCCI to settle a pending insolvency matter filed against it in Bengaluru NCLT.
Byju’s previously had three key branding partnerships with the BCCI, ICC (International Cricket Council), and FIFA (Federation Internationale de Football Association), all of which were up for renewal in 2023 but were not processed.
Meanwhile, Byju’s has reportedly settled its insolvency case with another Indian firm, Gurugram-based IT services firm Surfer Technologies.
The IT firm last week reportedly informed NCLT that it has reached an amicable settlement with Byju’s and hinted that it would withdraw its insolvency application against the edtech firm.
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