Byju’s CEO Claims Company Brought in Rs 28,000 Crore FDI, Highest Among Startups

• ByStartup Story Team     |    May 1, 2023

In response to the Enforcement Directorate’s (ED) announcement that it had conducted searches and seizures at three Bengaluru locations of edtech leader Byju’s under the Foreign Exchange Management Act (FEMA), founder and CEO Byju Raveendran wrote an email to employees stating that the company has made every effort to adhere to relevant foreign exchange regulations. He further stated that all cross-border transactions are solely routed through traditional banking channels.

According to an email reviewed by TOI, Byju Raveendran, founder and CEO of edtech giant Byju’s, has assured employees that the company has received approval from over 70 impact investors who have conducted due diligence on their operations, including compliance with the Foreign Exchange Management Act (FEMA). He expressed confidence that the authorities will come to the same conclusion. The email was sent on the night of April 29.

Byju Raveendran, CEO of edtech leader Byju’s, has restated that the company is fully cooperating with the authorities. Byju’s has spent almost Rs 9,000 crore on international acquisitions over the years, according to Raveendran, and has remitted some of its funding overseas to finance them. Byju’s has brought in FDI worth Rs 28,000 crore into India, according to Raveendran, higher than any of its domestic startup competitors. Raveendran also noted that Byju’s has created job opportunities for over 55,000 talented professionals, making it India’s largest startup employer.

The recent ED searches have dealt a new setback to Byju’s, which has been facing multiple allegations of unethical business practices. Backed by prominent investors such as General Atlantic and Tiger Global, Byju’s is India’s most valuable startup, with a valuation of $22 billion. The ED announced on Saturday that it has confiscated numerous “incriminating documents” during the raids conducted on Byju’s premises. The agency further stated that Raveendran did not cooperate with the investigation and was unresponsive, despite multiple complaints against the company that led to the initiation of the probe.

According to a statement released by the ED on Saturday, Byju’s has remitted almost Rs 9,754 crore between 2011 and 2023 in the name of overseas direct investment. The ED alleges that the company has booked approximately Rs 944 crore in the name of advertising and marketing expenses, including the amount remitted to foreign jurisdictions. Byju Raveendran stated in the email that the company has previously submitted information about the FDI raised, overseas investments made, and cross-border transactions related to marketing and branding activities to authorized representatives.

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