Amid Ongoing Turmoil, Byju Raveendran Drops Old Photograph

The founder of the ed-tech company Byju's, Byju Raveendran posted a photo of his younger days with a motivational caption on the social media platform X amid insolvency proceedings in the Supreme Court.

He captioned the post, "Broke, not Broken. We will rise again," which suggested his plans of reviving the bankrupt company once again which was once valued at $22 billion by investors.

What Triggered The Bankruptcy?

Byju's, an ed-tech firm offers online tutorials in subjects such as math, physics and chemistry for school students.

While the company's business boomed during Covid-19 pandemic as schools were forced to shut down, the business started facing losses after the pandemic was over.

During this time, the company's valuation shot up from $5 billion before the pandemic to $22 billion in 2022, and it acquired several companies on the way. Its fortunes started tanking as physical classes resumed and the firm's revenue could not sustain rapid expansion and aggressive acquisitions.

The Board of Control for Cricket in India (BCCI) asked a tribunal to initiate insolvency proceedings against Byju's for defaulting on $19 million of dues over sponsorship rights for the Indian cricket team's jerseys, in 2023.

These proceedings were quashed because the Indian cricket board and Byju's agreed and arrived at a settlement in which the company agreed to pay the full amount.

This case also prompted the firm's US lenders, who were represented by Glas Trust to approach the Supreme Court alleging that the company used the money it owed to its lenders to pay the BCCI.

While, the apex court stayed the tribunal's order and ordered insolvency proceedings against the firm, it denied charges of mismanagement.

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