Tax authorities have filed claims worth USD 101 million against embattled education-technology giant Byju’s, further intensifying the company’s financial woes as it undergoes an insolvency process, as per documents seen by Reuters.
According to documents on the Insolvency and Bankruptcy Board of India’s website, the Department of Revenue is seeking USD 18.7 million, while Karnataka’s state tax department, where Byju’s is headquartered, is claiming USD 82.3 million in unpaid dues. The outstanding amounts are described as "statutory dues," though no further details were provided.
Once valued at USD 22 billion and celebrated as India’s largest startup, Byju’s fortunes have rapidly declined amid a series of regulatory issues and a legal battle with US lenders over USD 1 billion in unpaid debts. This led to the company’s assets being frozen and placed under the management of court-appointed resolution professional Pankaj Srivastava. The company’s employees have also reported delays in salary payments and government tax deposits in recent months.
Byju’s, which gained prominence during the COVID-19 pandemic by offering online education services, operates in over 21 countries and employs around 27,000 staff, including 16,000 teachers. The company’s collapse has triggered a flood of claims from creditors, with over USD 1.5 billion in dues submitted by 1,887 parties so far, many of which are still under review.
The insolvency threatens to be one of the largest upsets in India’s startup ecosystem, leaving thousands of employees anxious over unpaid dues and the future of their careers.
(Inputs from Reuters)
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