Ed-tech platform BYJU’S has not been found to have violated the Foreign Exchange Management Act (FEMA) in the Enforcement Directorate’s (ED) investigation. According to sources cited by IANS, documents collected by the ED during their search and seizure operation in late April have yet to indicate any FEMA violations. While the investigation is still in its early stages, BYJU’S has reportedly cooperated with the ED and provided all necessary documents. However, a company spokesperson declined to comment on the development.
The search and seizure operation by the ED revealed that the edtech giant had received foreign direct investment of INR 28,000 crore ($3.4 billion) between 2011 and 2023. BYJU’S claimed that the visit was related to a routine inquiry under FEMA and that there were no violations by the company.
BYJU’S has raised $5.8 billion in funding across multiple rounds and counts Sequoia Capital, Silver Lake, BlackRock, Prosus, General Atlantic, Tiger Global, and multiple sovereign and pension funds among its investors. The company is currently in talks to raise between $400 million and $600 million from 10X AD and Apollo Global.
The ED also stated that it recovered documents revealing a remittance of INR 9,754 crore to various foreign jurisdictions under the pretext of overseas direct investment between 2011 and 2023. The agency also pointed out the delayed filing of financial statements by BYJU’S since FY21 and that it was cross-examining the figures provided by the company from banks.
BYJU’S has been making headlines for all the wrong reasons over the past year, from issues with its $1.2 billion term loan B to layoffs at group companies affecting thousands of employees. The investigation into BYJU’S financial affairs continues, and the company is yet to file its financial statements for the year ended March 31, 2022.
