New Delhi: Amid insolvency proceedings in the Supreme Court against Ed-tech company Byju, its founder Byju Ravindran has shared a motivational thought on social media indicating his faith in revival of the company. Sharing a photo from his younger days, he writes on X: “Broke, not Broken. We will rise again.” Once the world’s largest Ed-tech company, the startup was valued at over $22 billion by investors.
How Byju’s troubles began?
Byju’s offers online tutorials on various subjects for school students. Its business boomed during the Covid-19 pandemic. As schools were forced to be shut down, students turned to the online platform for learning.
Byju’s valuation shot up from $5 billion before the pandemic to $22 billion in 2022. It had also acquired several companies but started facing challenges after resumption of physical classes. The company’s revenues could not sustain rapid expansion.
The Board of Control for Cricket in India (BCCI) urged a tribunal to start insolvency proceedings against Byju’s for defaulting on $19 million dues over sponsorship rights for the Indian cricket team’s jerseys in 2023. The proceedings were quashed as both parties agreed to settle the matter mutually. The company agreed to pay the full amount.
The case prompted US lenders, represented by Glas Trust, to move the Supreme Court. They alleged that Byju’s used money owed to lenders to clear BCCI dues. The company denied charges of mismanagement. The apex court stayed the tribunal’s order and ordered insolvency proceedings.
Ravindran had called for a “thorough investigation” into alleged collusion and fraud involving the firm’s lender Glas Trust, consultancy firm EY, and former resolution professional Pankaj Srivastava.
