Byju Raveendran
Insolvency proceedings against Byju’s, a prominent ed-tech company, may result in thousands of employees being compelled to quit and a complete shutdown of its services, according to its CEO, Byju Raveendran. Byju’s, once India’s largest startup valued at a staggering $22 billion and backed by notable investors like Prosus and General Atlantic, has encountered numerous significant setbacks in recent months. These include extensive job cuts, a substantial collapse in its valuation, and intense disputes with investors who have accused CEO Byju Raveendran of serious corporate governance lapses.
The company’s most severe crisis emerged when the National Company Law Tribunal (NCLT) initiated insolvency proceedings following a complaint by the Board of Control for Cricket in India (BCCI) regarding an outstanding payment of $19 million related to a sponsorship deal. This insolvency process could potentially lead vendors who provide essential services to Byju‘s, necessary for the maintenance of its online platforms, to declare a default. This would likely result in a complete shutdown of services and bring the company’s operations to a grinding halt, Raveendran warned in a court appeal as he sought to quash the insolvency proceedings.
Byju’s operates in more than 21 countries and became particularly popular during the Covid-19 pandemic by offering online courses to millions of students. In his court filing, Byju Raveendran also expressed concern that the company’s employees, numbering around 27,000 and including 16,000 teachers, would suffer significantly and might be forced to leave the organization. He emphasized that the company is prepared to pay the outstanding dues to the Indian cricket board within 90 days, highlighting the urgency and gravity of the situation.
