Byju’s, India’s Most Valuable Startup, Faces Scrutiny over Unsubmitted Financial Statements
In a recent move, Karti Chidambaram, an Indian lawmaker, has requested the country’s fraud regulator to launch an investigation into the finances of Byju’s, the most valuable startup in the country. The call for an investigation comes after Chidambaram alleged that Byju’s has failed to submit its financial statements for the fiscal year 2020-21, which he claims violates a local law.
Background on Byju’s Financial Issues
Byju’s, valued at over $22 billion, has been facing several challenges in recent weeks. Despite securing $250 million in funding from its latest round, the startup has reportedly fired hundreds of employees and is looking to acquire an American firm at a valuation of over $2 billion.
Chidambaram’s Letter to SFIO
In a public statement, Chidambaram wrote to the Serious Fraud Investigation Office (SFIO), requesting them to look into Byju’s financing. The letter, which was posted on Twitter, reads:
"@SFIO, it’s imperative that a thorough investigation is launched into the finances of @BYJU’s. They have missed the legal deadline to submit their financial statements for FY 2020-21."
Government Scrutiny on Edtech Companies
The government has been taking steps to address concerns raised by consumers against edtech companies, including Byju’s. In a recent tweet, Piyush Goyal, Minister of Consumer Affairs, Food and Public Distribution, said:
"Building transparency & trust! Govt. taking positive steps to resolve issues raised by consumers against Edtech companies. Robust consumer complaint redressal mechanism at work to assist resolution."
Byju’s Response
Byju’s did not immediately respond to a request for comment.
Related Articles
- Government A airs Concerns over Complaints against Edtech Companies: Economic Times
- Oxshott’s Fake Investment in Byju’s and a Missing Rs 1,200 Crore: The Morning Context
- The Fake Investment that Connects Byju’s and Sri Sri Ravi Shankar: The Morning Context
- Hard Sells and ‘Toxic’ Targets: How Indian Edtech Giant Byju’s Fuels its Meteoric Rise: Rest of World
About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. He has written for about a dozen publications, including CNBC and VentureBeat, and graduated in Computer Science and Engineering in 2015.
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