/tice-news-prod/media/media_files/2025/01/29/0e5Zt9sF2UQqF4s0nG5F.jpg)
Once a shining beacon of India's booming edtech industry, Byju’s is now making headlines for all the wrong reasons. The company that once symbolized the aspirations of millions of students and parents is now caught in a legal and financial whirlwind, struggling to survive under an insolvency resolution process.
In a dramatic turn of events, the National Company Law Tribunal (NCLT) has ordered the removal of Byju’s Resolution Professional (RP) Pankaj Srivastava, accusing him of misleading the tribunal and acting against the interests of stakeholders. This development adds another layer of complexity to the ongoing insolvency proceedings and raises serious questions about the governance of the company.
Here TICE brings you key details of this update.
What Exactly Happened with BYJU's?
The NCLT’s recent ruling has significantly altered the course of Byju’s insolvency resolution. The tribunal found that Srivastava had wrongfully excluded two key lenders—Glas Trust LLC and Aditya Birla Finance Ltd—from the Committee of Creditors (CoC). These two financial institutions hold an overwhelming 99.82% of the voting share in the creditors’ committee, with Glas Trust alone controlling 99.41%.
Read More: What Is DeepSeek? The Chinese AI App Disrupting Global Tech
By arbitrarily excluding them, Srivastava effectively sidelined the primary decision-makers in Byju’s restructuring process. The tribunal viewed this move as a direct attempt to mislead the judiciary and compromise the interests of all stakeholders. Consequently, the NCLT directed the Insolvency and Bankruptcy Board of India (IBBI) to initiate disciplinary proceedings against him.
A Blow to Byju’s Already Fragile Situation
This latest order comes at a time when Byju’s is grappling with mounting debts, investor exits, and a rapidly shrinking valuation. Once valued at nearly $22 billion, the company has seen a dramatic fall, with its worth now being questioned amid severe liquidity issues and operational setbacks.
For months, the embattled edtech firm has been struggling to find a path forward. Its insolvency proceedings were momentarily halted in October when the Supreme Court intervened to set aside an earlier ruling from the National Company Law Appellate Tribunal (NCLAT). However, with the top court allowing the insolvency resolution process to continue, Byju’s has been caught in a legal and financial battle that seems far from over.
Read More: India's Digital Economy Set to Surpass Traditional Sectors by 2030
What Happens Next?
Following the NCLT’s ruling, the CoC, now reinstated with Glas Trust and Aditya Birla Finance as key players, will have to appoint a new resolution professional to take charge of Byju’s insolvency process. This decision is expected to play a crucial role in determining the company’s future—whether it will be able to restructure and survive or if liquidation will be the inevitable fate.
The road ahead for Byju’s remains uncertain. With ongoing disputes, legal battles, and an urgent need for strategic decision-making, the company’s ability to regain its former glory appears increasingly doubtful. Investors, employees, and stakeholders will now keenly watch how the new resolution professional navigates these turbulent waters.
The Bigger Picture: Lessons for the Indian Startup Ecosystem
Byju’s downfall is a cautionary tale for India’s rapidly growing startup ecosystem. It underscores the importance of financial discipline, corporate governance, and transparency. Startups, no matter how successful or well-funded, cannot afford to neglect these fundamental principles.
As India continues to produce unicorns at a rapid pace, Byju’s case serves as a wake-up call for entrepreneurs and investors alike. The edtech giant’s meteoric rise and equally spectacular fall highlight the risks of aggressive expansion without a sustainable financial model.
Read More: Can Dressfolk’s Latest Funding Weave a Sustainable Fashion Revolution?
While Byju’s future hangs in the balance, one thing is certain: its journey from a celebrated startup to an embattled company fighting insolvency will be remembered as one of the most dramatic stories in India’s corporate history. Whether it manages to turn things around or crumbles under the weight of its financial mismanagement will depend on the decisions made in the coming weeks.
For now, all eyes are on the newly reconstituted Committee of Creditors and the next moves in what has become one of India’s most closely watched corporate sagas.
Join Our Thriving Entrepreneurial Community
Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review