General Atlantic, Peak XV Partners, Sofina SA, and MIH Edtech Investments are among the investors of BYJU’S which have knocked on the doors of the SC
Aforementioned investors are seeking the court’s permission to address issues of mismanagement, alleged fund syphoning, financial irregularities, among others
Solicitor General of India Tushar Mehta, appearing for the Board of Control for Cricket in India (BCCI), and Byju Raveendran have sought an early hearing of the matter
Investors of embattled edtech giant BYJU’S
have moved the Supreme Court (SC), which is hearing a plea filed by a consortium of the company’s US-based lenders regarding insolvency proceedings, to intervene in the case so that they can put forward their concerns.
General Atlantic, Peak XV Partners, Sofina SA, and MIH Edtech Investments are among the investors of BYJU’S which have knocked on the doors of the SC, CNBC-TV18 reported.
According to the report, the aforementioned investors of BYJU’S are seeking the court’s permission to address issues of mismanagement, alleged fund syphoning, financial irregularities, and ongoing investigations by the Enforcement Directorate (ED).
The report added that Solicitor General of India Tushar Mehta, appearing for the Board of Control for Cricket in India (BCCI), has sought an early hearing of the matter. The call for an early hearing has found support from BYJU’S CEO and founder Byju Raveendran as well as GLAS Trust, the consortium of the US-based lenders.
It is pertinent to note that BYJU’S investors are already engaged in a legal battle with the startup at the National Company Law Tribunal (NCLT) since February 2024.
Back then, the investors were opposing the startup’s $200 Mn rights issue to be undertaken at a valuation cut of 99%.
After BYJU’S extraordinary general meeting (EGM) and rights issue went ahead amid legal back and forth, the investors filed a plea before the NCLT alleging oppression and mismanagement within the company.
While the contentious rights issue appeals are being heard at the Bengaluru bench of the Tribunal, the sword of bankruptcy is currently dangling on the head of the startup.
Earlier this month, the SC revived the insolvency proceedings against BYJU’S while hearing a plea filed by GLAS Trust against the National Company Law Appellate Tribunal’s (NCLAT) order to quash the insolvency proceedings.
The NCLAT had set aside the insolvency proceedings after the BCCI and BYJU’s reached an agreement, under which the latter would pay its dues of INR 158 Cr to the cricket board.
While the future looks bleak for BYJU’S, founder Raveendran continues to be optimistic.
In a recent email to employees, he said that the company is on the brink of reversing the negative business cycle that began two years ago and ready to launch BYJU’S 3.0 – “an AI-driven, hyper-personalised educational platform low on cost and high on impact”.
