Investors of the embattled edtech firm , including General Atlantic, Prosus, Peak XV, and Sofina, have reportedly approached the Supreme Court of India to address their concerns.
The four investors have informed the top court that they intend to present arguments related to the matters currently under review, Reuters reported, citing a legal filing dated August 25.
The investors expressed that, like the edtech firm’s US-based lenders , they are concerned about mismanagement within the company, the report added.
YourStory has reached out to BYJU’S for a comment.
US-based Glas Trust Company LLC, representing some of BYJU’S creditors, is contesting the NCLAT’s approval of a settlement with the BCCI in the apex court.
BYJU’S, which dodged a potential “death” after the NCLAT approved a Rs 158 crore settlement between the edtech firm and the BCCI on August 2, is once again facing insolvency following an interim order by the Supreme Court of India on August 14 which stayed the appellate tribunal’s decision.
The apex court’s decision has effectively revived the insolvency proceedings against BYJU’S, overturning the NCLAT’s earlier ruling that had set them aside.
BYJU’S and the group of investors have been in conflict for months. The investors initiated an oppression and mismanagement lawsuit against the company’s management at the NCLT in January. Since then, both parties have attended numerous hearings at the NCLT and the Bengaluru High Court. The legal dispute has now escalated to the Supreme Court.
Prosus, the largest institutional shareholder in BYJU’S, has invested approximately $536 million in the company, holding about a 10% stake in the edtech firm.
The Netherlands-based investment company had issued a statement expressing apprehensions regarding BYJU’S’ reporting and governance frameworks a month after its representative, Russell Dreisenstock, formally stepped down from the board of the edtech firm last year.
The edtech company, once riding high with a peak valuation of $22 billion in 2022, has seen its valuation decline by 99%.
Amid mounting difficulties, the cash-strapped company has not paid its employees’ salaries for July. In a recent email, Founder Byju Raveendran informed employees that their salaries would be disbursed once he regains control of the company.
