Byju’s Faces Total Shutdown If Insolvency Proceeds, Says CEO Byju Raveendran

New Delhi: 

Insolvency proceedings against ed-tech giant Byju’s, once India’s biggest startup valued at $22 billion, will likely force thousands of employees to quit and result in a total shutdown of its services, its CEO said in a court filing seen by Reuters.

Byju’s, backed by investors like Prosus and General Atlantic, has suffered numerous setbacks in recent months, including job cuts, a collapse in its valuation and a tussle with investors who accused CEO Byju Raveendran of corporate governance lapses. Byju’s has denied any wrongdoing.

Now Byju’s is facing its biggest crisis after a tribunal this week triggered insolvency proceedings following a complaint by the country’s cricket board over an outstanding payment of $19 million related to a sponsorship deal. Byju’s assets have been frozen and its board has been suspended.