- The Board of Control for Cricket in India (BCCI) has taken embattled edtech firm Byju’s to the National Company Law Tribunal, as indicated by information on the website.
- This comes months after Byju’s said it will not renew its branding partnerships as the edtech company said it looks to cut costs in order to achieve profitability.
- Byju’s had three significant branding partnerships with the BCCI, ICC, and FIFA, all of which were up for renewal in 2023.
- Byju’s confirmed earlier in the year that it would not renew any of them.
- This development follows fresh troubles for Byju’s as the Enforcement Directorate (ED) confirmed sending a show cause notice to edtech company Byju Raveendran in the FEMA violation case.
The Board of Control for Cricket in India (BCCI) has taken embattled edtech firm Byju’s to the National Company Law Tribunal, as indicated by information on the website.
Although the case was filed on September 8, it was officially registered only on November 15. The case between the BCCI and the parent company of Byju’s, Think and Learn Pvt Ltd, was scheduled for a hearing on November 28, according to information available on the NCLT website.
The NCLT website indicates that the case is set to be heard again on December 22. A spokesperson for BYJU’S stated, “We are in discussions with the BCCI to settle the matter, and we hope to achieve that soon.” This development comes months after Byju’s announced that it would not renew its branding partnerships, citing a cost-cutting strategy to achieve profitability.
Byju’s previously had three significant branding partnerships with the BCCI, ICC (International Cricket Council), and FIFA (Federation Internationale de Football Association), all of which were up for renewal in 2023. However, the company confirmed earlier in the year that it would not renew any of them. It remains undisclosed whether the filed suit is related to this matter or another issue.
This development also follows fresh troubles for Byju’s as the Enforcement Directorate (ED) confirmed sending a show cause notice to edtech company Think and Learn Private Limited and Byju Raveendran in the FEMA violation case.
The company has come under fire for delaying full and final settlements of laid-off employees yet again. The Bengaluru-based company had earlier shifted the date of payment from September to November. Recently, the company overcame a longstanding issue with Davidson Kempner, linked with covenants on Byju’s’ subsidiary Aakash. Earlier in November, Manipal Group chairman Ranjan Pai bought out the debt investment by the US Hedge Fund, in a Rs 1,400-crore deal, news outlets reported.
Meanwhile, in September, Byju’s also submitted a proposal to its lenders, in which the company expressed its intention to fully repay its $1.2 billion term loan B within the upcoming six months. Byju’s aims to achieve this by making an initial payment of $300 million within the next three months.
As part of its efforts to secure the necessary funds for loan repayment, the company has also decided to undertake a strategic review of its key assets. For this, Byju’s has put upskilling platform Great Learning and book reading platform Epic, up for sale, which would yield the company about $1 billion, news agencies reported.
Byju’s, founded over a decade back by former teacher Raveendran, had soared to new heights in March 2022 after it raised a massive $800 million funding round, at a $22 billion valuation, becoming India’s most-valued startup. But the company has come under fire since then for a host of issues including delayed financial results, the resignation of its auditor and three key board members.
(With inputs from agencies)
