The Supreme Court of India has stayed the tribunal’s order to halt Byju’s insolvency proceedings, granting relief to US investors in the Indian edtech firm. Collectors seeking a significant return on investment may target the once-celebrated edtech startup with a valuation of over $1 billion.
The Indian Supreme Court on Wednesday stayed the National Company Law Appellate Tribunal’s recent approval of a settlement between the Board of Control for Cricket in India (BCCI) and other parties, effectively putting on hold the earlier decision to halt insolvency proceedings against the cricket board. The Supreme Court’s order indicates that proceedings will recommence accordingly.
The latest Wednesday ruling marks yet another crisis for Byju’s, once hailed as India’s most valuable startup with a staggering $22 billion valuation.
The startup’s troubles began about two years ago, but escalated last month when an Indian tribunal court intervened after the agency failed to pay over $19 million it owed to the BCCI, which wields significant influence in India as the formal governing body of cricket, the country’s most popular sport.
Byjus averted legal action when Riju Raveendran, CEO Rohan’s brother, offered to settle the dispute with the Board of Control for Cricket in India (BCCI). The appeals tribunal subsequently dismissed the insolvency case.
A US-based firm representing lenders to a Byju’s affiliate, Glas Belief, disputed the tribunal’s settlement, contending that Riju Raveendran utilized the lender’s funds to settle his debt with the Board of Control for Cricket in India (BCCI).
Between 2020 and 2021, Byju’s secured more than $2.5 billion in funding, complemented by a $1.2 billion Term B loan from a consortium of US investors. collectors. The startup had planned an initial public offering (IPO) in early 2022 with a valuation exceeding $40 billion, but was forced to put those plans on hold when Russia’s invasion of Ukraine sent global markets reeling.
Byju’s remained silent on requests for comment.
For nearly two years, the startup has been grappling with a constant stream of challenges at its various entry points. Troubles mounted for the company as it failed to meet crucial monetary reporting deadlines, with income projections plummeting by a staggering 50% in 2022 alone?
Prime traders, along with Prosus and Peak XV, have leveled governance concerns against the edtech company, ultimately seeking control of the entity that has secured more than $5 billion in equity and debt financing.
In the final 12 months, board members in collaboration with the startup’s external auditor.
As tensions escalated in the high-stakes showdown, Byju’s faced a chorus of criticism from major stakeholders, including traders aligned with Prosus, Peak XV, Sofina, and the influential Chan Zuckerberg Initiative, prompting a heated debate that showed no signs of abating. The organization was instructed not to utilize the capital it had raised due to the ongoing rights issue, and as a result, was barred from doing so.
Prosus and BlackRock have .
