Bengaluru/Mumbai: The Supreme Court revived insolvency proceedings against edtech company Byju's on Wednesday following a lawsuit from US lenders.
The latest court order deepens a crisis that has seen the one-time market darling's valuation plunge from about $22 billion to less than $2 billion.
Here is an overview of Byju's and its troubles:
WHAT TRIGGERED THE INSOLVENCY?
The Board of Control for Cricket in India (BCCI) last year asked a tribunal to initiate insolvency proceedings against Byju's for defaulting on $19 million of dues. The dispute is over payments related to sponsorship rights for the Indian cricket team's jerseys.
The two sides had settled the matter, with Byju's agreeing to pay the full amount. Following that, an appeals tribunal quashed the insolvency proceedings against the company.
WHAT ARE THE US LENDERS SAYING?
The settlement and the quashing of insolvency proceedings prompted US lenders represented by Glas Trust to approach the Supreme Court.
These lenders say they are owed $1 billion by the company.
Glas argues that Byju's is using the money owed to lenders to pay the cricket board.
The Supreme Court stayed the tribunal's order and will re-start insolvency proceedings against Byju's.
WHAT'S THE TUSSLE WITH INVESTORS?
In February, a group of shareholders, including tech investor Prosus, alleged "financial mismanagement and compliance issues" at Byju's and called for the removal of founder and CEO Byju Raveendran, and a reconstitution of the board.
"We are deeply concerned about the future stability of the company under its current leadership and with the current constitution of the Board," the shareholders said.
Byju's, which has denied mismanagement, says the investors don't have the power to vote out its CEO.
In June, Prosus wrote off the value of its 9.6 per cent stake in Byju's, making the Dutch firm the first to fully write-off its investment in the troubled startup.
WHY DID DELOITTE, BOARD MEMBERS RESIGN?
Last year, Deloitte said it was resigning as auditor because Byju's had delayed financial statements for the year ending March 31, 2022. Deloitte said it did not receive necessary documents even after writing several letters to the board.
Three board members of Byju's - representing investors Peak XV Partners (previously Sequoia Capital India), Prosus and Chan Zuckerberg Initiative - also stepped down.
WHAT DOES BYJU'S DO?
Byju's says it is the "world's largest education technology company". It offers online tutorials on subjects such as maths, physics and chemistry for school students.
The online business boomed during the Covid-19 pandemic. Byju's valuation shot up from $5 billion before the pandemic to $22 billion in 2022, and it acquired several companies on the way.
WHO ARE BYJU'S FOUNDERS?
Byju's is run by its founder, Byju Raveendran, and his wife, Divya Gokulnath. Raveendran, an engineer by training whose parents were teachers, started teaching mathematics to friends, and built the business as its popularity grew.
He launched Byju's in 2011 and its app in 2015.