Government Orders Investigation into BYJU’S Financial Records
Pune, 11th July 2023: The Ministry of Corporate Affairs has initiated an inspection of the account books belonging to BYJU’S, as reported by anonymous sources familiar with the matter. The request for the inspection was made in response to an internal assessment of the company’s affairs. The ministry has set a deadline of six weeks for the submission of a report, the sources revealed while requesting anonymity due to the non-public nature of the information.
This inspection comes at a challenging time for BYJU’S, which was valued at $22 billion in its most recent funding round. The educational technology company is currently engaged in negotiations to restructure its $1.2 billion term loan after breaching certain terms of its debt agreement. BYJU’S, once considered emblematic of India’s thriving startup ecosystem, has undergone significant workforce reductions and is actively seeking to secure over a billion dollars in funding to address its financial difficulties.
The recent resignation of three board members and the departure of Deloitte as its auditor last month have also raised concerns. The outcome of the inspection will determine whether the matter should be escalated to the Serious Fraud Investigation Office, according to the sources.
