Edtech giant Byju’s has secured a major victory, escaping the brink of insolvency. The National Company Law Appellate Tribunal (NCLAT) on Friday approved a settlement between the company and the Board of Control for Cricket in India (BCCI) over unpaid dues worth ₹ 159 crore.
This development effectively reinstates founder Byju Raveendran as CEO. The NCLAT overturned a previous order that initiated insolvency proceedings against Byju’s, a decision that could have spelled doom for the once-high-flying startup.
Raveendran’s brother, Riju, played a pivotal role in resolving the crisis. He used personal funds to clear the BCCI dues, with the final payment scheduled for August 9th. The NCLAT praised Riju’s efforts to salvage the company, describing the settlement as a ‘bury the hatchet’ moment.
Byju’s has faced mounting pressure from investors, lenders, and employees over the past few years. Aggressive expansion, coupled with allegations of mismanagement, led to a dramatic fall from grace. The company has undergone significant restructuring, including job cuts and office closures.
Despite the challenges, Byju’s remains defiant. Raveendran, currently based in Dubai, hailed the NCLAT’s decision as a ‘testament to the heroic efforts’ of the Byju’s team. The company also dismissed allegations of financial irregularities, asserting that the funds used to settle the BCCI dues were not part of the missing $533 million.
As Byju’s navigates this turbulent period, the road to recovery remains uncertain. The company must now focus on rebuilding trust with investors and customers while steering clear of future controversies.
