BYJU’S CEO Byju Raveendran has stated in a court filing, that the insolvency proceeding against the ed-tech platform is likely to force thousands of its employees to quit and subsequently result in a total shutdown for the company.
Backed by investors in the likes of Prosus and General Atlantic, the ed-tech platform was once India’s highest valued startup at $22 billion.
The prominent ed-tech platform has been on a setback-streak with the insolvency cases, conflict with investors, drop in valuation, and offline coaching centers shutdown among others.
Additionally, BYJU’S assets have been frozen, and board suspended, following the Indian Cricket Board’s insolvency proceedings over a due payment of $19 million.
Raveendran stated in a court appeal, “The insolvency process will likely cause vendors who provide critical services to BYJU’S for the upkeep of online platforms to declare a default, ‘leading to a total shut down of services’ and bringing the operation to a grinding halt.”
Reuters reviewed the 452-page filing which is undisclosed for the public, made by Raveendran’s counsel MZM Legal at the Karnataka High Court. The filing provides the details of the possible business impact that the insolvency proceedings would cause. The filing also stated that Raveendran was willing to pay the outstanding dues to the BCCI.
The next court hearing is scheduled for Monday.
BYJU’S gained prominence during the COVID-19 pandemic through its online courses spread across 21 countries. The company also launched its in-person coaching centers. As of now, the ed-tech company has around 16,000 teachers and a total of 27,000 employees.
