How India's Byju's went from startup star to facing insolvency

Byju's, India's edtech giant, faces insolvency amid financial mismanagement allegations and valuation plummet from $22B to $2B.

Indian edtech company Byju's is staring at insolvency proceedings on July 16 following a tribunal order, deepening a crisis that has seen the one-time market darling's valuation plunge from about $22 billion to less than $2 billion.

Byju’s, which describes itself as the “world’s largest education technology company”, offers online tutorials on several subjects including math, physics and chemistry for school students. Its business boomed during the Covid-19 pandemic and 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.

It is run by its founder, Byju Raveendran, and his wife, Divya Gokulnath. Mr. Raveendran, an engineer by training whose parents were teachers, started teaching mathematics to friends and built the business as its popularity grew. He launched Byju's in 2011 and its app in 2015.

Here is an overview of Byju's and its troubles:

The BCCI last year asked a tribunal to initiate insolvency proceedings against Byju's for defaulting on $19 million of dues. The dispute is over payments related to sponsorship rights for the Indian cricket team's jerseys.

Byju's has said it wants to settle the matter, but a tribunal ruled in favour of BCCI, and appointed a resolution professional to oversee the company, suspending its board of directors.

In February, a group of shareholders, including tech investor Prosus, alleged “financial mismanagement and compliance issues” at Byju’s and called for the removal of founder and CEO Byju Raveendran, and a reconstitution of the board. “We are deeply concerned about the future stability of the company under its current leadership and with the current constitution of the Board,” the shareholders said.