Byju’s, once India’s most valued startup, is facing a severe crisis. The ed-tech giant, which raised over $5 billion since its inception in 2011, has defaulted on a significant payment of Rs 155 crore to the Board of Control for Cricket in India (BCCI). This financial misstep has triggered insolvency proceedings against the company.
What Led to This Crisis?
Byju’s has been grappling with various challenges for over a year. Issues such as payment defaults, mass layoffs, boardroom conflicts, and allegations of corporate governance lapses have plagued the company. However, the default on the BCCI payment was the final blow, pushing Byju’s to the brink of insolvency.
What Happens Next?
The National Company Law Tribunal (NCLT) has admitted the insolvency petition against Byju’s. This marks a crucial stage in the company’s journey, with potential outcomes including a debt restructuring or liquidation.
The insolvency process could have far-reaching consequences. Over 5,000 employees, including teachers, face an uncertain future. Additionally, millions of students who rely on Byju’s for education could be impacted.
Read more: Marketing News, Advertising News, PR and Finance News, Digital News
