Recently on September 8, 2023, The Board of Control for Cricket in India BCCI has filed for bankruptcy against Byju’s under Section 9 of the Insolvency and Bankruptcy Code, 2016 because they didn’t pay Rs 150 crore on sponsorship dues.
The case is filled before Bengaluru branch of the National Company Law Tribunal (NCLT). This is because Byju’s has failed to pay the sponsorship dues.
Case was filed on September 8, 2023, and got registered on November 15, 2023. Byju’s asked the BCCI to encash the ₹140 crore bank guarantee. The other ₹160 crore was to be paid in installments.
After OPPO’s contract termination, Byju’s became Team India’s official jersey partner. The relationship was extended for 18 months without a written agreement, and Byju’s quit the contract in the middle of it, and paid BCCI till September 2022. A few months before Dream11 became Team India’s jersey sponsor for three years at a cost of INR 358 crore.
Byju’s announced they would not be renewing any branding partnerships with BCCI for profitability reasons and financial challenges.
Byju’s auditors ‘Deloitte’ resigned because of major delays in releasing financial statements. During that time, three key board members also departed.
Byju’s was given a “show cause” warning by the Enforcement Directorate for violating anti-money laundering regulations.
Think & Learn, which is the parent company of Byju’s, saw a 6% drop in operating losses, which came to Rs 2,400 crore for its main online education business. At the same time, revenue more than doubled, hitting Rs 3,550 crore for the fiscal year that ended on March 31, 2022.
