Byju's U.S. Unit Files for Chapter 11 Bankruptcy, Cites Liabilities of $1-10 Billion

2 Feb 2024 , 12:56 PM

Byju’s U.S. unit has initiated Chapter 11 bankruptcy proceedings in the U.S. court of Delaware, citing liabilities ranging from $1 billion to $10 billion.

Byju’s Alpha unit, in its court filing, declared assets valued between $500 million and $1 billion, with estimated creditors numbering between 100 to 199.

Founded by Byju Raveendran, the ed-tech startup was once valued at $22 billion in 2022, but has faced recent challenges including lenders pursuing bankruptcy actions.

Recent estimates suggest Byju’s valuation has plummeted to between $1 billion and $3 billion, as stated by some of its investors.

Byju’s announced plans on Monday to raise $200 million through a rights issue of shares to address immediate liabilities and cover operational expenses.

Over the past few months, the company has been in negotiations regarding the repayment of a $1.2 billion term loan and has undertaken significant layoffs.

Additionally, Byju’s has faced scrutiny from Indian authorities regarding alleged violations of the country’s foreign exchange laws.

For feedback and suggestions, write to us at [e-mail]