By Indranil Sarkar and Arpan Chaturvedi
BENGALURU/NEW DELHI (Multibagger) - Edtech company Byju's, once India's biggest startup valued at $22 billion, will face insolvency proceedings for failure to pay $19 million in dues to the country's cricket board, a tribunal said on Tuesday.
Byju's has suffered setbacks, including boardroom exits and a tussle with investors. CEO Byju Raveendran has been accused of corporate governance lapses, job cuts, and a collapse in valuation.
India's companies tribunal ruling initiated insolvency proceedings. An interim resolution professional will oversee management as the board of directors is suspended.
Byju's wishes to reach an amicable settlement with BCCI and is confident in resolving the issue.
Byju's investors voted to oust Raveendran in February, a move the company deems invalid.
The parent company, Think & Learn Private Limited, defaulted on $19 million in dues to BCCI.
Delhi-based lawyer Bishwajit Dubey suggests legal appeal or quick settlement to resolve the matter.
The BCCI declined to comment.
Analysis: Byju's, once a unicorn in the Indian startup ecosystem, is now facing insolvency due to financial disputes. This could impact the company's operations and reputation, affecting investors and customers. The outcome of the proceedings will determine Byju's future and its ability to regain trust in the market.