Byju's Saga Intensifies as Vendor Claims Hit Rs 190 Crore at NCLT

The National Company Law Tribunal (NCLT) has become a battleground for Byju's, with claims against the education technology giant reaching Rs 190 crore. Among the latest to file a claim is Oppo, the Chinese handset manufacturer, demanding Rs 1 crore. This development adds to the financial woes of Byju's, which has been unable to utilise USD 200 million in funds raised through a rights issue due to ongoing disputes with its investors.

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The cumulative claims lodged before the NCLT against Byju's now stand at Rs 190 crore. This total includes significant claims from notable entities such as the Indian Cricket Board (BCCI), which has filed a claim of Rs 158.9 crore, making it the largest claimant. Other claimants include Cogent E-Services and Teleperformance Business Services, seeking Rs 6.7 crore and Rs 5 crore, respectively. Despite attempts to reach out, both Byju's and Oppo have remained silent on these matters.

Behind these financial disputes is a group of four investors—Prosus, General Atlantic, Sofina, and Peak XV—supported by other shareholders like Tiger and Owl Ventures. They have raised concerns with the NCLT regarding the company's management and the contentious rights issue. In February, Byju's concluded this rights issue at a valuation 99 per cent lower than its peak enterprise value of USD 22 billion. However, a majority of Byju's shareholders have backed a resolution to increase its authorised share capital, incorporating the USD 200 million raised.

The next hearing on this matter is scheduled for June 6 at the NCLT Bengaluru. As these legal proceedings unfold, they highlight the challenges faced by one of India's most celebrated startups amidst its ambitious expansion plans.