The American subsidiary of edtech Byju's has initiated Chapter 11 bankruptcy proceedings in Delaware, citing liabilities between $1 billion and $10 billion. Based on court filing, BYJU’S Alpha's assets are in the range of $500 million to $1 billion, with an estimated 100 to 199 creditors.  

Currently, the company's board comprises the company's founder, Byju Raveendran, along with his wife, Divya Gokulnath and his brother, Riju Raveendran. In the previous year, three board members stepped down from their positions, i.e. Russell Dreisenstock from Prosus, Vivian Wu from Chan Zuckerberg Initiative, and GV Ravishankar from Peak XV Partners.

The development came at a time when Byju's parent company, Think and Learn, is raising $200 million from existing investors through rights issues. This move was undertaken to meet the company's corporate and current finance capital expenditure needs. In the last 18 months, the founders have invested more than $1.1 billion in the company.  

In another new development, majority shareholders of the edtech have written to replace Raveendran from the leadership post.

Mint reported, citing its sources, that around six investors in Think and Learn, which operates under Byju's brand, have called for an extraordinary general meeting to address issues at the edtech major and oust founders from having control over the firm.

The investors led by Dutch investment firm Prosus in the EGM notice have requested the resolution of the outstanding governance, financial mismanagement and compliance issues and the reconstitution of the Board of Directors. 

Investors such as General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, who jointly account for around 30 per cent stake in the company have backed this resolution.