On 16th July, Byju’s, an Indian edtech company, faced insolvency proceedings following a tribunal’s order. The crisis has caused Byju’s valuation to drop from around $22 billion to less than $2 billion.

The Board of Control for Cricket in India (BCCI) initiated insolvency proceedings against the firm for defaulting on $19 million in dues related to sponsorship rights for the Indian cricket team’s jerseys.

The firm expressed intentions to resolve the issue, but a tribunal ruled in favour of the cricket board. The tribunal’s decision included appointing a resolution professional to manage the former company and suspending its board of directors.

These developments stem from a dispute over sponsorship payments and legal actions taken by the cricket board to recover the dues.

In February, some shareholders, including Prosus, accused the company of financial mismanagement and compliance issues. They demanded that the founder and executive, Mr. Byju Raveendran, be terminated and the board reorganized.

Shareholders expressed concern about the company’s stability under current leadership. Byju denied the allegations and stated that investors cannot vote out its CEO.

In June, Prosus completely wrote off the value of its 9.6% stake in Byju’s, marking it as a total loss.

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