Investigation Ordered into Byju’s Financial Records
According to sources, the government has instructed a review of the financial records of education-technology giant Byju’s. The company has recently faced turmoil with the departure of its auditor and three board members.
The Enterprise Ministry has sought an investigation within six weeks, the people said, asking not to be named because the information is not public. The audit follows an internal assessment of the company’s situation and – based on the results of the audit – the board decides whether the matter should be referred to the Serious Fraud Investigation Office.
The audit would be another headache for Byju, which was valued at $22 billion in its last funding round, as it restarts talks to restructure its $1.2 billion term loan after breaching certain terms of its debt agreement. Once a symbol of India’s booming startup scene, the company has cut thousands of jobs and is seeking to raise more than $1 billion amid financial difficulties.
Byju’s spokesperson did not respond to an email and text messages requesting comment. An email sent to the Ministry of Business Affairs was not immediately answered.
Deloitte Haskins & Sells resigned as Byju’s auditor last month, citing delays in submitting financial statements. Representatives of three influential backers—Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative—resigned from Byju’s board in the same week, underscoring the rapid erosion of confidence in the company’s ranks.
