Byju’s US Unit Initiates Chapter 11 Bankruptcy Proceedings in Delaware

Byju’s, the renowned Indian ed-tech company founded by Byju Raveendran, has announced that its US unit, Byju’s Alpha, has filed for Chapter 11 bankruptcy in the US court of Delaware. The company, once valued at $22 billion in 2022, has faced recent challenges leading to lenders initiating bankruptcy proceedings. Byju’s Alpha has listed liabilities in the range of $1 billion to $10 billion, with assets estimated between $500 million and $1 billion.

The bankruptcy filing follows a decline in Byju’s valuation, as reported by some investors, ranging between $1 billion and $3 billion. In response to these challenges, Byju’s announced a rights issue of shares to raise $200 million, intending to address immediate liabilities and cover operational costs.

In recent months, the company has been engaged in negotiations to repay a $1.2 billion term loan, leading to the layoff of thousands of employees. Byju’s has also been under scrutiny by Indian authorities for alleged violations of the country’s foreign exchange laws.

Byju’s remains committed to its mission of transforming education through technology despite the current financial difficulties. The company is actively working to address its financial obligations, and the Chapter 11 filing is seen as a strategic move to navigate the challenges and restructure its financial position.