Crisis at Byju’s: Foreign enders submit insolvency petition
Byju’s said in an emailed response. A representative for the lenders’ group didn’t immediately respond to an email seeking comments. Moneycontrol reported the development earlier.
The company, founded by former teacher Byju Raveendran and once valued at $22 billion, has been locked in a legal dispute with creditors over the missed payment. Raveendran attracted capital from some of the biggest investors in the tech world, including Mark Zuckerberg’s Chan Zuckerberg Initiative, Silver Lake Management and Naspers Ltd. But the online tutoring firm lost money after a pandemic-era boom in business dried up.
Raveendran, pledged his home as well as those owned by his family members to raise money for paying employees, Bloomberg reported in December citing people familiar with the matter. Byju’s Alpha is a holding company that the lenders need to control to protect their rights, a creditors’ lawyer told a Delaware Court earlier this year. The creditors accused the company of hiding $533 million in an obscure hedge fund, according to court filings.
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