SIGN UP FOR POSTSCARD'S MORNING NEWSLETTER

The best stories of the day, in your inbox

Byju’s, Once India’s Most Valued Startup Faces Bankruptcy Proceedings

byju's

An Indian tribunal court has initiated insolvency proceedings against Byju’s, once a $22 billion edtech startup. The move comes in response to a plea filed by the Board of Control for Cricket in India (BCCI), which seeks to recover nearly $19 million in outstanding dues from the company12.

Key Points from Byju’s going Bankruptcy:

  • Background: Byju’s, known for its online learning platform, had previously sponsored the Indian cricket team. However, the startup faced governance issues, missed financial reporting deadlines, and fell short of revenue projections by over 50% in recent years.
  • Insolvency Resolution: The National Company Law Tribunal (NCLT) ruling installs an interim resolution professional to manage Byju’s operations, effectively pushing out the startup’s founder. Creditors, employees, and vendors are invited to file claims against the embattled firm.
  • Legal Battles: Byju’s investors, including Prosus and Peak XV, have alleged governance problems and are legally fighting for the removal of founder Byju Raveendran. BlackRock, a minority investor, has written down the value of its investment in Byju’s to zero.
  • Appeal and Settlement: Byju’s can appeal the NCLT decision and has expressed a desire to reach an amicable settlement with BCCI.

Implications:

The collapse of Byju’s, once a high-flying unicorn, highlights the challenges faced by edtech startups and underscores the importance of financial transparency and governance in the tech industry.

The insolvency proceedings could also impact employees and vendors, who are now being invited to file claims. This situation is a stark reminder of the challenges faced by the edtech sector, which has witnessed a slowdown in recent months.

The company is likely to contest the NCLT’s decision in the National Company Law Appellate Tribunal. However, the company’s future remains uncertain as it grapples with financial woes and legal battles.

Deep Blue Aerospace, a prominent Chinese aerospace company, has set

The Arunachal Pradesh government has launched a comprehensive new tourism

Thailand welcomes an impressive 40 million tourists in 2025, marking

In a landmark event, Prime Minister Narendra Modi inaugurated Mumbai’s

In a bold and optimistic declaration, Sam Altman, CEO of

In a tragic incident that has shocked the Shakarpur community,

In a shocking incident, authorities have arrested a 30-year-old man

In a significant move, the Maharashtra government has approved the

In a dramatic turn of events, Akshay Shinde, the primary

In a shocking and gruesome discovery, the dismembered body of

Anura Kumara Dissanayake, leader of the Marxist-leaning National People’s Power

In an exciting announcement at the RGG Summit 2024, SEGA

In a significant milestone for the economy of India, experts

In a significant move to expand its footprint in the

In a fiery address, Andhra Pradesh Deputy Chief Minister Pawan

In 2023, the Karnataka Milk Federation (KMF) made headlines when

In a shocking incident that has sparked outrage, an army

The controversy surrounding the sacred Tirupati laddoos has taken a

A mysterious virus is spreading across the United States, causing

In a significant policy shift, the Canada government announced new

In a shocking revelation, a recent lab report has confirmed

In a significant diplomatic move, India has formally notified Pakistan,

In a landmark decision, the Union Cabinet has approved the

In a concerning development, a 38-year-old man from Malappuram, Kerala,

Triumph Motorcycles has launched its new Speed T4 in India

Get daily updates in your inbox. Subscribe to our newsletter.