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Byju's, once India's largest startup and valued at $22 billion in 2022, is now facing a significant financial crisis. The education-technology company is currently undergoing an insolvency process, with Indian tax authorities seeking a substantial $101 million in unpaid dues. The company's downfall stems from a combination of regulatory issues and financial difficulties, including a $1 billion debt owed to US lenders. These factors have resulted in the freezing of Byju's assets and a court-appointed resolution professional, Pankaj Srivastava, taking over the company's operations.
The tax claims, totaling $101 million, include $18.7 million owed to the Department of Revenue and $82.3 million to the tax department of Karnataka, where Byju's is headquartered. These claims come amidst ongoing concerns from Byju's employees who are facing delayed or missed salaries and mandatory tax deposits. The claim document refers to these outstanding amounts as 'statutory dues' but does not provide further details. Byju's and Srivastava have yet to respond to inquiries from Reuters regarding the tax claims.
The insolvency process has attracted a large number of creditors, with claims exceeding $1.5 billion from 1,887 parties. These claims are currently under review. Byju's, operating in over 21 countries, gained immense popularity during the COVID-19 pandemic through its online education courses. With approximately 27,000 employees, including 16,000 teachers, the company's insolvency represents a significant setback for India's celebrated startup sector. The situation has caused widespread panic among employees, who are fighting to recover their dues and safeguard their careers.
Source: Byju’s facing $101 million tax claims from authorities amid insolvency: Report