In a shocking revelation, the Board of Control for Cricket in India (BCCI) has officially declared that edtech giant Byju’s has defaulted on a payment of Rs 158 crore. This disclosure came to light through information available on the National Company Law Tribunal (NCLT) website, signaling deepening troubles for the embattled education technology firm.
The NCLT has granted Byju’s a two-week period to respond to the case, followed by an additional week for BCCI to file a rejoinder. The case, initially filed on September 8, was officially registered on November 15, with the next hearing scheduled for December 22.
Byju’s, known for its significant branding partnerships with BCCI, ICC, and FIFA, all set for renewal in 2023, earlier confirmed it would not renew any of them. It remains unclear whether the current lawsuit is related to these partnerships or involves a different matter.
Not just BCCI: Byju’s in hot water
This financial setback is the latest in a series of challenges for Byju’s. The Enforcement Directorate (ED) recently sent a show cause notice to Think and Learn Private Limited, Byju’s parent company, and its founder Byju Raveendran in a FEMA violation case. The company also faced criticism for delaying settlements for laid-off employees and has undergone a strategic review, putting assets like Great Learning and Epic up for sale to raise funds.
Byju’s, once valued at $22 billion after a massive funding round in March 2022, has faced scrutiny for various issues, including delayed financial results, the resignation of its auditor Deloitte, and the departure of key board members. The company’s attempt to navigate financial challenges involves a proposal to fully repay a $1.2 billion term loan B within six months, coupled with a strategic review of its assets to secure necessary funds.
As Byju’s confronts these financial storms, the outcome of the legal proceedings with BCCI adds another layer of uncertainty to the future of one of India’s most prominent edtech companies.
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