The ED wants to check details of various transactions and loans of BYJU’S
In a statement on Saturday, ED said that it conducted searches and seizure action at three premises linked to BYJU’S
Following the searches, founder Raveendran Byju in an email to BYJU’S employees said that the company is fully cooperating with the authorities
Following the Enforcement Directorate’s (ED) search and seizure operations at premises linked to edtech giant BYJU’S, the agency is also reportedly planning to write to lenders and banks as part of the investigation against the edtech giant.
The ED wants to seek details of various transactions and loans of BYJU’S, ET reported.
ED said in a statement on Saturday that it conducted searches and seizure action at three premises including two business and one residential in Bengaluru in the case of Raveendran Byju and his company ‘Think & Learn Private Limited’ under the provisions of Foreign Exchange Management Act (FEMA).
The agency also claimed that several summonses were issued to the founder and CEO, Raveendran Byju, during the investigation. “However, he always remained evasive and never appeared during the investigation,” it stated.
As per the ET report, Byju had asked to be exempted from appearing before the ED due to family emergencies. During searches on Thursday and Friday, a statement from BYJU’S chief financial officer Ajay Goel, who was appointed earlier this month, was recorded.
However, Goel was not able to provide clarity on multiple transaction details.
To establish the fund flow and its source on transactions which require more clarity, ED will seek information from lenders and banks.
Meanwhile, Byju in an email to BYJU’S employees said that the company is fully cooperating with the authorities.
“The recent visit by the ED is an enquiry under FEMA. 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,” he said.
He further clarified that all of BYJU’S cross-border transactions have been duly vetted by both its professional advisors/counsel and advisors/counsel of the investment funds and other sophisticated counterparties.
Additionally, all such transactions are routed only through regular banking channels or the RBI’s authorised dealer banks and the requisite documentation and statutory filings have been duly submitted, BYJU’S CEO said in the letter.
The company seems to be under pressure as the lenders have also sought a prepayment of $200 Mn, along with a higher interest rate, as a precondition to restructure its $1.2 Bn Term Loan B (TLB).
BYJU’S is also in talks to raise $600 Mn – $700 Mn via a mix of equity and convertible notes, with some new investors. A large chunk of the funding round is said to be through equity funding at a flat valuation of $22 Bn.
Further, BYJU’S has raised close to $5.8 Bn from the likes of General Atlantic, Prosus Ventures, Sequoia Capital India, among others. The company had last raised $250 in October 2022 at $22 Bn valuation.
According to its FY21 financial results, the edtech decacorn had revenue of INR 2,280 Cr, and losses to the tune of INR 4,588 Cr. It is yet to file its financial statements for FY22.
