Byju’s in Talks with BCCI to Settle Rs 158 Crore Dues; Faces Funding Struggles Amid Valuation Cuts

24 Jan 2024 , 03:00 PM

Byju’s in talks with BCCI to settle Rs 158 crore unpaid sponsorship dues with a ‘directional agreement’ on a payment plan over six to eight months.

Nitin Golani, Byju’s India CFO, states a broad agreement on the payment plan with payments spread over the specified period. BCCI initiated legal action at NCLT over Rs 158 crore unpaid dues, leading to insolvency and bankruptcy proceedings.

Byju’s filed an application for arbitration, but NCLT suggests arbitration may not impede proceedings under the Insolvency and Bankruptcy Code.

Byju’s FY22 financials filed late with a 118% increase in consolidated revenue from Rs 2,428 crore (FY21) to Rs 5,298 crore (FY22).

Losses surged from Rs 4,564 crore (FY21) to Rs 8,245 crore (FY22). Byju’s seeks $100 million funding at a valuation of less than $2 billion, marking a 90% reduction from the last funding round valuing it at $22 billion.

BlackRock, holding less than 1% stake, reduces Byju’s valuation to $1 billion from the previous $22 billion. Investor valuation downgrades continue, with Prosus marking down its stake, resulting in a valuation of less than $3 billion, an 86% decline.

Workforce impact as Byju’s laid off thousands of employees in the last two years due to funding challenges and slowing demand for online learning services.

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