The Board of Control for Cricket in India (BCCI) has brought Think & Learn, the parent company of edtech giant Byju’s, before the National Company Law Tribunal (NCLT). The case, filed on September 8 and officially registered on November 15, is scheduled for a hearing on November 28, with another session slated for December 22, as per the NCLT website.
Byju’s spokesperson stated, “We are in discussions with BCCI to settle the matter, and we hope to achieve that soon.” Law firm Argus Partners is advising BCCI in this matter, while an email query to BCCI remains unanswered.
Although details of the case are undisclosed, reports suggest it revolves around a dispute concerning the sponsorship of the Indian cricket team’s jerseys. This development follows Byju’s earlier decision to terminate the sponsorship of the Indian cricket team jersey, emphasizing a shift towards profitability. The edtech company is undergoing strategic restructuring and leadership reorientation to enhance operational efficiency, reduce losses, and attain profitability. Byju’s plans to lay off approximately 4,000 employees, constituting over 11% of its workforce, in the coming weeks.
Arjun Mohan, recently appointed as CEO of its India business, spearheads the restructuring exercise. Earlier in the year, Byju’s opted not to renew major branding partnerships with BCCI, ICC, and FIFA, all slated for renewal in 2023.
In June, gaming firm Dream11 replaced Byju’s as the jersey sponsor of Team India in a deal valued at Rs 358 crore, following the premature termination of Byju’s contract with BCCI.
This latest case emerges amidst Byju’s grappling with various challenges, including securing fresh capital, delays in financial reporting, and legal disputes with lenders. The Enforcement Directorate (ED) issued a showcause notice of Rs 9,362 crore to Think & Learn and Byju Raveendran for alleged violations of foreign exchange rules.
Simultaneously, Byju’s faces a dispute with US lenders over a missed interest payment on a $1.2 billion term loan B (TLB). To address financial challenges, Byju’s has decided to sell two key assets—Epic and Great Learning—to generate $800 million-$1 billion in cash.
