MUMBAI : Sources familiar with the matter revealed that the insolvency petition was recently filed with the National Company Law Tribunal in India, marking a critical juncture in Byju’s ongoing legal tussle with creditors.

Byju’s Alpha, founded by former teacher Byju Raveendran and once valued at a staggering $22 billion, has been entangled in a legal dispute with creditors stemming from the default on a substantial loan. Despite securing investments from tech heavyweights like Mark Zuckerberg’s Chan Zuckerberg Initiative, Silver Lake Management, and Naspers Ltd., the edtech giant faced financial setbacks when the pandemic-induced boom in its business waned.

Facing the financial crunch, Raveendran reportedly pledged his home and those of his family members to raise funds for employee payments, as reported by Bloomberg in December. Byju’s Alpha, a holding company critical for lenders safeguarding their rights, became a focal point in the dispute. Creditors accused the company of concealing $533 million in a little-known hedge fund, per court filings.

In response to the insolvency filing, Byju’s issued a statement challenging the validity of lenders’ actions, highlighting ongoing legal challenges, including proceedings before the New York Supreme Court. The company characterized the lenders’ move as premature and baseless.

Representatives for the lenders’ group have yet to respond to requests for comments, leaving the outcome of this high-stakes legal battle hanging in the balance.