An Indian court on Tuesday launched bankruptcy proceedings for Bijoux, once India's most valuable start-up, following a petition by the Indian Cricket Board. The ruling effectively installs an interim resolution professional to manage the company's operations and ousts the start-up's founders.
The National Company Law Tribunal's ruling (PDF) came in response to a petition by the Board of Control for Cricket in India (BCCI), which is seeking recovery of nearly $19 million from the Bengaluru-based ed-tech startup. Byju's was previously a sponsor of the Indian cricket team.
The court called on creditors, employees and vendors to file lawsuits against the companies in question. “The existence of the debts and default on them have been clearly established,” the court said.
Bijoux said it could appeal the ruling and hoped to “reach an amicable settlement with BCCI”. A Bijoux spokesman added: “In the meantime, our lawyers are considering the order and we will take necessary steps to safeguard the interests of the company.”
The court order is the latest in a series of crises to hit Bijoux over the past two years. The company's problems began to surface two years ago when it missed a financial reporting deadline and revenue fell more than 50% below expectations.
The company's major investors, including Prosus and Peak XV, claim the edtech startup is mired in governance issues. The investor group is also in a separate legal battle with Bijoux, seeking the removal of founder Bijoux Raveendran. The startup's directors and auditors resigned in protest last year.
The dispute between a group of investors, including Sofina and the Chan Zuckerberg Initiative, intensified earlier this year after Bijoux slashed the company's valuation to just $25 million to raise funds in a rights issue.
A recent court order has prohibited Bijoux from going ahead with its second rights issue. BlackRock, a minority investor in Bijoux, has also reduced its investment in Bijoux to zero.