Lionel Messi might not know it, but a piece of recent news has come up regarding a company he previously collaborated with. An Indian multinational educational technology company named BYJU’s is on the verge of going bankrupt.
This follows the filing of bankruptcy by its US arm due to defaulting on a $1.2 billion debt. A proceeding regarding insolvency went through in a Delaware court, which stated that the company had been lacking sufficient funds to defend itself against litigation.
It is a big deal to sponsored the FIFA World Cup. BYJUS has done a great job and achieved a huge success.#BYJUSxFIFA pic.twitter.com/ubpgplGsfs
— Savnam Singh (@SinghSavnam) March 24, 2022
This comes as a major shock for soccer fans because the company was associated with Argentine icon Lionel Messi before the FIFA World Cup. Not only Messi but the company was also named one of the official sponsors for the 2022 FIFA World Cup by FIFA following a deal of around $40 million.
However, the deal came at a cost. They had to lay off almost 4000 employees in 2022, following budget constraints. In June 2023, they laid off another 1,000.
Lionel Messi was named global brand ambassador by Byjus.
November 2022 saw Lionel Messi come to a collaboration with Byju’s. The company is known for providing educational assistance to children around the world and named Lionel Messi as the global brand ambassador of its social impact arm, ‘Education for All’.
The deal was finalized and made available on the internet just one month prior to the start of the FIFA World Cup. Messi was still playing his traits for Paris Saint-Germain at that time.
BYJU’s ropes in Lionel Messi as their Global Ambassador for their social impact arm, Education For All.
The announcement of the deal comes prior to the FIFA World Cup 2022, where BYJU’s became the first Indian company to sponsor the event.#messi #lionelmessi #byjus pic.twitter.com/PJ4FPj0RuV
— Mad About Sports (@MadAboutSports4) November 4, 2022
Following the deal, the co-founder of Byjus, Divya Gokulnath, said, “We are honoured and excited to collaborate with Lionel Messi as our global ambassador. He rose from the grassroots to become one of the most successful sportspeople ever. That is the kind of opportunity that BYJU’s Education for All (EFA) wants to create for the nearly 5.5 million children it currently empowers.”
The agreement was made to promote the cause of equitable education around the world. Messi is reported to have been earning a figure between $5 and $7 million per year for the deal.
Byjus faces pressure to oust Lionel Messi’s ex-collaboration partners.
The recent months have not been easy for the company. Following a number of layoffs of employees, Byju’s has slowly lost its value in the market. Recent reports suggest that the company has now gotten new investors. However, there’s a catch.
BYJUs alpha – the US arm of BYJUs has thrown the towel.
Says it can’t continue fighting about debt anymore.
But this doesn’t affect the Indian entity.
Or does it? pic.twitter.com/60rB8MejGp
— Sarath Penumuru (@SarathPenumuru) February 2, 2024
A group of six investors under Think and Lean Private Limited has been reportedly asking for the sack of the company’s founders. As per Reuters, a meeting has been called in recent days that will outline the transfer of power from the founder of the company, Byju Raveendran, to someone new.