Mumbai: A US unit of Byju’s has filed for Chapter 11 bankruptcy proceedings in the US court of Delaware. It lists liabilities in the range of $1 billion to $10 billion. According to the petition filed in the court, Byju’s Alpha unit has listed its assets between $500 million and $1 billion, with the number of estimated creditors shown as between 100 and 199.
Company valued at $22 billion in 2022
The ed-tech company, founded by Byju Raveendran, was one of India’s hottest startups, valued at $22 billion in 2022, but recently the lender has initiated bankruptcy proceedings against it. Some investors of Byju’s said that the valuation of the company has fallen between $ 1 billion to $ 3 billion.
Let us tell you that Byju has said that it will raise $ 200 million through rights issue of shares to meet immediate liabilities and other operating costs. It is also negotiating the repayment of a $1.2 billion term loan and has laid off thousands of employees over the past few months. The company has also been under investigation by Indian authorities for alleged violations of the country’s foreign exchange laws.
