- The company has suffered numerous setbacks in recent years
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Byju founder and former billionaire Byju Raveendran is on the cusp of losing company control following an Indian court’s insolvency ruling.
According to Reuters, the National Company Law Tribunal in Karnataka passed the proceedings against Byju following a complaint from the cricket board over a $19 million unpaid debt.
However, Byju’s has denied any wrongdoing and will file an appeal with the companies law appeals tribunal as a court-appointed professional is currently managing the company.
“In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company’s interests,” a spokesperson for Byju’s said in a statement via Bloomberg Law.
Post-pandemic decline
The company has suffered numerous setbacks in recent years, including boardroom exits and a tussle with investors who accused CEO Raveendran of corporate governance lapses, job cuts and a collapse in its valuation to less than $2 billion.
Since its establishment in 2015, Byju’s has experienced rapid growth and international expansion during the COVID-19 pandemic, making Raveendran a billionaire.
However, as the pandemic eased and in-person classes resumed, the company’s financial situation worsened, leading to legal issues in the US and domestically.
