BYJU’S has settled with French digital services company Teleperformance Business Services, the NCLT was told today (June 26)
The insolvency court instructed Teleperformance to file a memo indicating its intention to withdraw the insolvency plea in light of the settlement, to finalise the case closure
The core issue revolves around Teleperformance’s insolvency plea against BYJU’S, alleging non-payment of approximately INR 3-4 crore in pending dues by the company led by Byju Raveendran
Edtech major BYJU’S has reportedly settled with French digital services company Teleperformance Business Services, the National Company Law Tribunal (NCLT) was told today (June 26).
Earlier today, it was reported that a year-long investigation by the government revealed that the edtech major fell short on compliance issues but found no proof of wrongdoing such as siphoning of funds or manipulation of financial accounts.
As per Moneycontrol’s report, the insolvency court instructed Teleperformance to file a memo indicating its intention to withdraw the insolvency plea in light of the settlement, to finalise the case closure.
NCLT has repeatedly advised BYJU’S to settle with Teleperformance within a week. The tribunal cautioned that if the dispute remained unresolved by then, it would proceed to hear the case on its merits and issue an appropriate order.
On February 7, the NCLT issued a notice to BYJU’S regarding an insolvency plea filed by French outsourcing firm Teleperformance Business Services. The edtech firm had previously engaged outsourcing agencies including Teleperformance, Cogent E Services, and iEnergizer until mid-2022. By mid-2022, BYJU’S discontinued services with Teleperformance and Cogent E Services as part of cost-cutting measures amidst mounting challenges.
On April 18, NCLT granted BYJU’S a week to settle its payment dispute with Teleperformance Business Services. BYJU’S counsel informed the Bengaluru bench that efforts were underway to resolve the issue with the French outsourcing firm and expressed confidence in reaching a settlement soon. The NCLT adjourned the proceedings until April 30, indicating it would hear both parties if no agreement was reached by then.
At the heart of the matter is the insolvency plea of Teleperformance Business Services India, the Indian arm of the French customer services company Teleperformance, against BYJU’S. The company alleged that the Byju Raveendran-led company failed to clear pending dues of about INR 3-4 Cr.
Teleperformance entered into a service agreement in April 2022 and it raised over 20 invoices amounting to over INR 4 Cr between March and August 2023, which went unpaid.
According to a Moneycontrol report, Teleperformance stated that BYJU’S agreed to settle the amount in three installments: INR 1.5 Cr in the first tranche, INR 2 Cr in the second, and INR 2.2 Cr in the final installment. Although BYJU’S has resolved its dispute with Teleperformance, it is currently engaged in approximately 10 similar proceedings with other operational and financial creditors.
This comes days after BYJU’S moved the Karnataka High Court challenging the order of the NCLT restraining it from going ahead with the second tranche of its $200 Mn rights issue.
The development comes at a time when BYJU’S is embroiled in multiple legal cases in courts across India and the US. Disgruntled investors have accused the company of violating the NCLT’s February order.
The story traces its origins to February 2024, when reports surfaced that the edtech major was looking to undertake a rights issue at a 99% valuation cut. Subsequently, investors organised an extraordinary general meeting (EGM) in a bid to remove CEO Byju Ravendran and his family from leadership at the company.
The edtech giant’s net loss widened by 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21. Operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review.
