A tribunal court in India has initiated insolvency proceedings against Byju’s, once the country’s most valuable startup, at the behest of the nation’s influential cricket board, which filed a petition seeking the move on Tuesday. A Delaware court grants a preliminary injunction, effectively removing the embattled billionaire founder from his $22 billion company, marking a stunning turnaround for an organization once valued at that amount and now facing significant operational challenges under the temporary leadership of a newly appointed decision maker.
The Nationwide Firm Legislation Tribunal issued an order on Tuesday, responding to a petition filed by the Board of Management for Cricket in India (BCCI) to recover approximately $18.9 million from Bengaluru-based edtech company Byju’s.
The tribunal has issued a call to action, inviting collectors, workers, and distributors to submit claims against the struggling organization. “The existence of a debt and a subsequent default are unequivocally established,” the court stated.
Byju’s has expressed a desire to reach an amicable settlement with the Board of Control for Cricket in India (BCCI), citing the need to do so. In a statement, a Byju’s spokesperson noted that “in the meantime,” legal professionals are reviewing the order and will take necessary steps to protect the company’s interests.
A court-ordered docket comes amidst a flurry of crises that have beset Byju’s over the past two years. The corporation’s troubles began to escalate when it failed to meet financial reporting deadlines two years ago, and its revenue projections subsequently missed the mark by more than 50%.
The EdTech startup’s primary trader, along with Prosus and Peak XV, has allegedly filed a claim. The investor group is reportedly seeking to replace Byju Raveendran, its founder, in a move that could significantly alter the direction of the company. The startup’s board of directors and independent auditor.
A dispute erupted within the investment group, comprising Sofina and the Chan Zuckerberg Initiative, in the past year after Byju’s reduced its company valuation to secure capital through a rights issue.
A recent judicial decree. BlackRock, a minority investor in Byju’s, has recently been reportedly seeking an exit from its stake in the Indian ed-tech firm.
