ED conducts searches at premises of Byju Raveendaran in Bengaluru; BYJU’s calls it routine checkup

In the case of Byju Raveendaran and his company Think and Learn Private Limited, Directorate of Enforcement (ED) conducted searches and seizure actions at three sites (2 business and one domestic) in Bengaluru on Saturday in accordance with the requirements of the Foreign Exchange Management Act (FEMA).

Byju’s, a well-known online learning platform, is administered by the corporation. A variety of damning documents and digital data were recovered during the search and seizure operation.

According to the research, the ed-tech unicorn got foreign direct investment (FDI) worth approximately Rs.28,000 crore between 2011 and 2023.

Additionally, the company has transferred roughly Rs.9,754 crore in the name of overseas direct investment to various foreign jurisdictions during the same time period.

Byju and his company Think & Learn Pvt Ltd have budgeted about Rs.944 crore for marketing and advertising costs, including the sum sent to a foreign country.

Additionally, according to the press release, the company has not produced financial statements since FY 2021 and has not had the accounts audited.

On the basis of a number of complaints from private individuals, the investigation into the platform was started.

Byju Raveendaran, the company’s founder, received multiple summonses during the ED investigation, but he continued to be evasive, the press release said.

Further investigation is under process.

BYJU’s responses in this matter:

A representative for BYJU’S legal team told Mint that the visit by ED representatives was connected to a standard FEMA investigation.

“We have cooperated fully with the authorities and given them all the information they have asked for. We are devoted to upholding the highest standards of compliance and ethics and have the utmost faith in the reliability of our operations. We are hopeful that this issue will be resolved quickly and satisfactorily and we will keep collaborating closely with the authorities to make sure they have all the information they want”, the spokesperson said.

Who is Byju Raveendran?

Byju Raveendran is the founder of edtech paltform BYJU’s. The Hurun Global Rich List 2023 ranks him as the second-richest entrepreneur in the world of education. His total wealth is $3.3 billion.

The learning app byju’s, which was founded in 2011 and released in 2015, experienced an economic boom during the coronavirus outbreak. When the schools reopened after the pandemic, the app’s popularity started to decline.

BYJU’s funding issues:

Post-pandemic as investors tightened their purse strings for loss-making startups, Byju’s has seen a significant decline in funding. The company’s net loss in FY21 was Rs.4,589 crores, a dramatic increase from Rs.262 crores the year before.