Education technology company Byju's is close to settling a $19 million payments dispute with the Indian cricket board, which could free the business from an insolvency process that has frozen the assets of what was once India's biggest startup, said three sources close to the matter.

An Indian tribunal this month initiated insolvency proceedings against Byju's after the Board of Control for Cricket in India (BCCI) complained about its failure to recover sponsorship payments from the company, dealing another blow to the business founded by CEO Byju Raveendran, who had soared from teacher to startup billionaire.

Valued at $22 billion in 2022, Byju's has suffered numerous setbacks in recent years, including boardroom exits and a tussle with investors who accused Raveendran of corporate governance lapses. It has also had to shed jobs and has suffered a collapse in its valuation to less than $3 billion.

Byju's has denied any wrongdoing.

However, Byju's is closing on a settlement with the BCCI, the three sources said on condition of anonymity because the discussions are private.

Two of the sources said the company will pay the BCCI the outstanding amount in three instalments, starting with an upfront payment of 500 million rupees ($6 million).

A Byju's spokesperson said the company was unable to make immediate comment and the BCCI did not respond to an emailed request for comment.

The terms of the settlement are still under negotiation so could change or be withdrawn, said one of the sources, adding that Raveendran is leading the negotiations himself.

(Reporting by Juveria Tabassum and Aditya Kalra Editing by David Goodman)