MUMBAI: Byju’s, the prominent Indian education technology company once valued at $22 billion, is poised to contest insolvency proceedings initiated against it this week, aiming to halt the process amidst a financial crisis, sources revealed on Wednesday.
The National Company Law Tribunal in Karnataka’s southern state ordered insolvency proceedings after a complaint by the cricket board, citing unpaid dues amounting to $19 million. Currently, a court-appointed professional oversees the company’s operations.
Byju’s has faced several setbacks in recent years, including leadership changes and disputes with investors over governance issues. These challenges contributed to job cuts and a significant drop in valuation to less than $2 billion. Byju’s has refuted allegations of misconduct.
Sources indicated that Byju’s intends to file an appeal with the Companies Law Appeals Tribunal in New Delhi this week to challenge the insolvency order. Concurrently, discussions are ongoing to resolve the outstanding dues with the cricket board, although the company’s immediate priority is to prevent the insolvency proceedings from progressing, one source stated.
