The NCLT has asked Surfer Technologies and BYJU’S to file a formal application with regards to settling the insolvency petition
In February 2024, Surfer Technologies filed an application to initiate insolvency proceedings against BYJU’S over pending dues of INR 2.3 Cr
Last month, BYJU’S informed the NCLT that it had reached a settlement with France-based Teleperformance Business Services in connection with another insolvency petition
Edtech major BYJU’S
has reportedly settled its insolvency case with Gurugram-based IT services firm Surfer Technologies.
As per Livemint, the IT firm last week informed the National Company Law Tribunal (NCLT) that it has reached an amicable settlement with BYJU’S and hinted that it would withdraw its insolvency application against the edtech firm.
Eventually on Monday (July 15), the tribunal asked both parties to file a formal application in this regard as the NCLAT had previously reserved an order in connection with the insolvency petition filed by Surfer Technologies.
BYJU’S declined to comment on Inc42’s queries on the matter.
In February 2024, Surfer Technologies filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 to initiate insolvency proceedings against BYJU’S. Surfer Technologies, which offered IT-related services to the edtech major’s customer care and sales teams in India, argued before the NCLT that BYJU’S owed it INR 2.3 Cr.
“We were the digital marketing vendors. We would send them leads and only after they confirm a lead, we would raise an invoice. They remained unpaid to date,” Surfer Technologies’ counsel reportedly argued before the tribunal.
Later, the NCLT issued a notice to BYJU’S in February seeking its response in connection with the insolvency plea. In April, the tribunal reportedly fined the troubled startup INR 20,000 for delays in replying to Surfer Technologies’ petition.
Two months later, the two parties have agreed to settle the case.
It is pertinent to note that the latest development comes weeks after BYJU’S informed the NCLT that it had reached a settlement with France-based Teleperformance Business Services in connection with another insolvency petition involving dues to the tune of INR 5 Cr.
Teleperformance last month withdrew the petition after settling the case with the edtech startup.
BYJU’S is also grappling with other insolvency pleas filed by investors General Atlantic and MIH Edtech over alleged oppression and mismanagement at the edtech platform. Additionally, there are other legal cases also filed by investors and creditors against BYJU’S that are currently pending before various courts.
The settlement is expected to offer some relief to the troubled edtech juggernaut, which is currently dousing fires on multiple fronts, including a severe funding crunch, a looming debt crisis, mass layoffs, mounting losses, top-level attrition, and delays in filing audited financial statements.
BYJU’S saw its consolidated net loss surge 81% to INR 8,245.2 Cr in the fiscal year 2021-22 (FY22) from INR 4,564.3 Cr in the previous year. Meanwhile, operating revenue jumped over 120% year-on-year (YoY) to INR 5,014.6 Cr in the fiscal year ended March 2022. It is yet to file its financial statements for FY23.
