Byju's Settles $19 Million Dispute with BCCI, Escapes Insolvency

Byju's Settles $19 Million Dispute with BCCI, Averts Insolvency

Indian ed-tech giant Byju's has reached a settlement with the Board of Control for Cricket in India (BCCI) in a $19 million payments dispute, averting an insolvency process that threatened to freeze its assets.

The settlement was confirmed by Arun Kathpalia, a senior lawyer involved in the case. According to Kathpalia, Byju's founder's brother, Riju Raveendran, will make the payment to BCCI. While the exact amount to be paid is not yet known, Kathpalia revealed that 500 million rupees (around $6 million) has already been disbursed to the Indian cricket board.

The dispute stemmed from unpaid sponsorship payments by Byju's, which led BCCI to initiate insolvency proceedings against the company earlier this month. The situation marked a significant setback for Byju's, which has faced numerous challenges in recent years.

Once a darling of investors, Byju's has experienced significant turmoil, including changes in its board of directors, conflicts with investors, and a dramatic drop in its valuation from $22 billion in 2022 to under $3 billion in 2023. Despite these challenges, Byju's has denied any wrongdoing.

The National Company Law Appellate Tribunal, which is currently handling the case, has announced that it will continue to hear the matter on Thursday. The settlement with BCCI is expected to provide some relief to Byju's, which has been struggling to raise funds and restructure its operations.

Tags: #Byju's, #BCCI, #PaymentsDispute, #Insolvency, #EdTech