— A U.S. unit of Indian education technology startup Byju’s has filed for Chapter 11 bankruptcy proceedings in the U.S. court of Delaware, listing liabilities in the range of $1 billion to $10 billion.
Byju’s Alpha unit listed its assets in the range of $500 million to $1 billion, according to a court filing, which showed estimated creditors in the range of 100 to 199.
The ed-tech company, founded by Byju Raveendran, was one of India’s hottest startups, valued at $22 billion in 2022, but has more recently seen lenders initiating bankruptcy proceedings against it. Some of Byju’s investors said the company’s valuation had fallen to between $1 billion and $3 billion.
Byju’s said on Monday it would raise $200 million through a rights issue of shares to clear “immediate liabilities” and for other operational costs.
It has also been negotiating the repayment of a $1.2 billion term loan in the last few months and laid off thousands of employees.
The firm has also been under the scanner of Indian authorities over alleged violations of the country’s foreign exchange laws.
Reporting by Kanjyik Ghosh; Editing by Arun Koyyur and Shilpi Majumdar
— Techmeme