Edtech

Edtech giant BYJU’s likely to file FY22 financial results soon amid ED probe

• ByStartupStory     |    May 2, 2023

India’s leading edtech company BYJU’S may soon file its financial results for the fiscal year 2022, according to a report by The New Indian Express. The Bengaluru-based decacorn had previously filed its FY21 financials after an 18-month delay in September 2022. The report states that BYJU’S losses widened to INR 4,564.38 crore in FY21, which is 14 times more than the loss of INR 305.5 crore in FY20. Other Indian edtech unicorns such as Unacademy, upGrad, Vedantu, PhysicsWallah, and Eruditus have already filed their FY22 financials.

BYJU’S recently appointed Ajay Goel as its new Chief Financial Officer amid the delay in filing its financial results. However, the company now faces scrutiny from the Enforcement Directorate (ED), which searched three premises in Bengaluru linked to BYJU’S parent company, Think & Learn Private Limited, over alleged foreign exchange law violations. The ED stated that the company had not prepared its financial statements since the 2020-21 fiscal and had not gotten its accounts audited, which is mandatory.

In response to the searches, BYJU’S CEO Byju Raveendran sent an internal memo to employees, stating that the ED’s visit was an enquiry under the Foreign Exchange Management Act (FEMA). Raveendran further said, “The information requested by and furnished to the officers in connection with the FDI raised, overseas investments made, and cross-border transactions relating to marketing and branding activities by BYJU’S has previously been submitted by our authorised representatives.”

The filing of the financial results for FY22 will give a better understanding of BYJU’S financial performance in the last fiscal year. The company has been growing rapidly and has attracted several big-ticket investments over the past few years, with a valuation of over $18 billion as of September 2021.

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