Summary:
Byju's, once valued at $22 billion, has been declared insolvent by an Indian court.
The Board of Control for Cricket in India (BCCI) initiated the proceedings to recover unpaid sponsorship fees.
The National Company Law Tribunal (NCLT) appointed an interim resolution professional to manage the company.
Byju's faces governance issues, missed financial deadlines, and allegations from investors.
The company's valuation has plummeted to $25 million, and even BlackRock has written down its stake to zero.
The Rise and Fall of Byju's: From Unicorn to Insolvency
Byju's, once India's most valuable startup, has been thrust into insolvency proceedings, a stark contrast to its former $22 billion valuation. This dramatic turn of events was sparked by a petition from the Board of Control for Cricket in India (BCCI), seeking to recover nearly $19 million in unpaid sponsorship fees.
The National Company Law Tribunal (NCLT) ruled in favor of BCCI, appointing an interim resolution professional to manage Byju's operations. The court acknowledged the existence of a debt and a default in payment, leaving Byju's with the option to appeal the decision.
This insolvency comes amidst a series of crises that have plagued Byju's over the past two years. These include missed financial reporting deadlines, falling short of revenue projections, and allegations of governance issues by top investors like Prosus and Peak XV. The investor group is also seeking the removal of founder Byju Raveendran, further complicating the situation.
The edtech giant's valuation has plummeted to a mere $25 million, and even BlackRock, a minority investor, has written down its stake to zero. These developments paint a grim picture for Byju's future, raising concerns about the viability of the once-promising startup.
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