CORPORATE
Byju’s set for insolvency process as NCLT admits BCCI plea against edtech company
- IBJ Bureau
- Jul 17, 2024
The Bengaluru bench of the National Company Law Tribunal (NCLT) has admitted a plea from the Board of Control for Cricket in India (BCCI) to initiate insolvency proceedings against Byju’s, the embattled edtech company led by Byju Raveendran.
The development follows BCCI’s move to recover alleged unpaid dues amounting to Rs 158 crore from Byju’s.
The dues are linked to a sponsorship contract between Byju’s and the BCCI for the Indian cricket team’s jerseys.
The petition filed by BCCI last year against Think & Learn, the parent company of Byju’s, highlights the company’s failure to honour its financial commitments.
“The Interim Resolution Professional shall after collation of all the claims received against Think and Learn Pvt Ltd, the Corporate Debtor, and the determination of the financial position of the Corporate Debtor constitute a Committee of Creditors,” the order said.
The next hearing is scheduled for November 15. Byju’s has stated that it is in discussions with BCCI to resolve the pending issues.
Byju’s, which previously held prominent sponsorship deals with the BCCI, International Cricket Council (ICC) and Federation Internationale de Football Association (FIFA), saw these partnerships lapse in 2023 without renewal.
In a significant blow to the edtech giant, tech investor Prosus wrote off its 9.6 per cent stake in Byju’s for the financial year 2024, becoming the first major investor to completely write off its investment.
Prosus attributed this decision to a steep decline in Byju’s valuation, which had peaked at $22 billion in 2022 but has since plummeted due to financial, legal and operational difficulties.
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