BCCI Takes BYJU’S To NCLT Over Jersey Sponsorship Dispute

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In another trouble for embattled BYJU’S, the Board of Control for Cricket in India (BCCI) has dragged the edtech decacorn to the National Company Law Tribunal (NCLT). 

As per the details available on the NCLT website, the case was filed in November this year. 

The case likely pertains to the dispute around the sponsorship rights of the Indian cricket team’s jerseys, according to The Morning Context, which was the first to report the news. 

The publication quoted a source as saying, “There is no way to be sure about the amount, but I hear it can vary between INR 100 Cr and INR 250 Cr.”

Meanwhile, a BYJU’S spokesperson told Inc42 that the company is in discussions with the cricket board and expects to settle the matter soon. 

“We are in discussions with the BCCI to settle the matter and we hope to achieve that soon,” the spokesperson said, without giving any additional details about the case.

Troubles Continues Unabated At BYJU’S

While details are still scarce, the story traces its origins to 2019 when BYJU’S took over the sponsorship of the Indian cricket team from OPPO till the end of March 2022. This came after the smartphone brand handed over the remaining term of its sponsorship to the edtech giant after headlining the Indian team’s jersey for two-and-a-half years. 

Subsequently, BYJU’s sought an extension of the sponsorship for an additional year till 2023-end, reportedly for a cumulative sum of $55 Mn. 

However, BYJU’S unceremoniously exited its jersey sponsorship deal with the BCCI in December 2022 amid financial troubles as the funding winter began to hit the Indian startup ecosystem.

Over the course of the next few months, BYJU’S grabbed the limelight for all the wrong reasons. As funding taps ran dry and investors tightened their purse strings, the edtech company began a cost-cutting exercise. Overall, it has laid off over 5,000 employees till date since 2022 and about 4,000 more are expected to face the axe. 

Meanwhile, losses also piled up as BYJU’S acquisitions hammered its financials. The startup recorded a nearly 20X year-on-year (YoY) surge in net loss to INR 4,588 Cr in the fiscal year 2020-21 (FY21), while revenue was almost flat at INR 2,280 Cr. 

Meanwhile, the delay in releasing the financial statements for FY22 and FY23 resulted in heightened investor scrutiny. This delay also led to the departure of auditor Deloitte and, subsequently, three key board members

Recently, BYJU’S released parts of its standalone FY22 results but failed to furnish audited financial statements for the period. 

Alongside, there appears to be a looming debt crisis involving its lenders in connection with the $1.2 Bn Term Loan B (TLB). There have also been delays in vendor payments, provident fund payments for laid off employees, and outstanding transactions involving customer refunds. 

Making matters worse seems to be the long line of top-level exits at the company, including those of group chief financial officer (CFO) and India CEO. 

The company is also facing regulatory scrutiny for the delay in filing financial statements. Meanwhile, the Enforcement Directorate recently sent a show-cause notice to the company for allegedly flouting anti-money laundering norms.

The post BCCI Takes BYJU’S To NCLT Over Jersey Sponsorship Dispute appeared first on Inc42 Media.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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BCCI Takes BYJU’S To NCLT Over Jersey Sponsorship Dispute

In another trouble for embattled BYJU’S, the Board of Control for Cricket in India (BCCI) has dragged the edtech decacorn to the National Company Law Tribunal (NCLT). 

As per the details available on the NCLT website, the case was filed in November this year. 

The case likely pertains to the dispute around the sponsorship rights of the Indian cricket team’s jerseys, according to The Morning Context, which was the first to report the news. 

The publication quoted a source as saying, “There is no way to be sure about the amount, but I hear it can vary between INR 100 Cr and INR 250 Cr.”

Meanwhile, a BYJU’S spokesperson told Inc42 that the company is in discussions with the cricket board and expects to settle the matter soon. 

“We are in discussions with the BCCI to settle the matter and we hope to achieve that soon,” the spokesperson said, without giving any additional details about the case.

Troubles Continues Unabated At BYJU’S

While details are still scarce, the story traces its origins to 2019 when BYJU’S took over the sponsorship of the Indian cricket team from OPPO till the end of March 2022. This came after the smartphone brand handed over the remaining term of its sponsorship to the edtech giant after headlining the Indian team’s jersey for two-and-a-half years. 

Subsequently, BYJU’s sought an extension of the sponsorship for an additional year till 2023-end, reportedly for a cumulative sum of $55 Mn. 

However, BYJU’S unceremoniously exited its jersey sponsorship deal with the BCCI in December 2022 amid financial troubles as the funding winter began to hit the Indian startup ecosystem.

Over the course of the next few months, BYJU’S grabbed the limelight for all the wrong reasons. As funding taps ran dry and investors tightened their purse strings, the edtech company began a cost-cutting exercise. Overall, it has laid off over 5,000 employees till date since 2022 and about 4,000 more are expected to face the axe. 

Meanwhile, losses also piled up as BYJU’S acquisitions hammered its financials. The startup recorded a nearly 20X year-on-year (YoY) surge in net loss to INR 4,588 Cr in the fiscal year 2020-21 (FY21), while revenue was almost flat at INR 2,280 Cr. 

Meanwhile, the delay in releasing the financial statements for FY22 and FY23 resulted in heightened investor scrutiny. This delay also led to the departure of auditor Deloitte and, subsequently, three key board members

Recently, BYJU’S released parts of its standalone FY22 results but failed to furnish audited financial statements for the period. 

Alongside, there appears to be a looming debt crisis involving its lenders in connection with the $1.2 Bn Term Loan B (TLB). There have also been delays in vendor payments, provident fund payments for laid off employees, and outstanding transactions involving customer refunds. 

Making matters worse seems to be the long line of top-level exits at the company, including those of group chief financial officer (CFO) and India CEO. 

The company is also facing regulatory scrutiny for the delay in filing financial statements. Meanwhile, the Enforcement Directorate recently sent a show-cause notice to the company for allegedly flouting anti-money laundering norms.

The post BCCI Takes BYJU’S To NCLT Over Jersey Sponsorship Dispute appeared first on Inc42 Media.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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