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Byju’s Reassurance After ED Raids, Says Company Fully Complying With Law

Byju's said the company has taken all efforts to fully comply with all applicable foreign exchange laws and all our cross-border transactions have been duly vetted.

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Byjus aims to enroll 1 million students into this programme in the next two years.
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Following recent Enforcement Directorate(ED) raids, BYJU’s on Monday reassured its employees and partners that the company fully complies with the country’s laws.

The reassurance has come after a recent weekend raid at Byju offices by ED, said the report in NDTV.

The report quoting Byju Raveendran, the start-up's founder and CEO’s letter said: “Byju's has taken all efforts to fully comply with all applicable foreign exchange laws and all our cross-border transactions have been duly vetted by both its professional advisors/counsel and advisors/counsel of the investment funds and other sophisticated counterparties”.

The report said the case has  come at a time when  Byju, valued at $22 billion, is in talks with investors to raise funds to address a liquidity crunch. 

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“The firm had also been trying to appease creditors seeking restructuring of a $1.2 billion term loan after the once high-flying startup missed deadlines to file financial accounts for the year to March 31, last year,” it said.

ED has conducted searches at three premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited' (Byju online learning platform) under the provisions of FEMA. 

During the search, various incriminating documents and digital data was seized, ED said.

“Raveendran wrote the company had made a number of overseas acquisitions as part of its growth strategy and had transferred funds abroad to pay for the deals. He added that all of the transactions had been made through regular banking channels with the appropriate documentation,” the report said.

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More than 70 investors have invested in BYJU's and they have conducted thorough due diligence, he said. 

"We are confident that the authorities will also come to the same conclusion," he added.

"Lastly, I want to express my gratitude to all of you for your continued hard work and dedication towards our mission of transforming education in India and around the world," Raveendran wrote. 

"I understand that this news may have caused concern and I want to assure you that we remain steadfast in our commitment to our students and our vision."
 

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