Byju Raveendran, the founder of edtech giant Byju’s, has told his employees that all cross-border transactions have been duly scrutinized and have been found to be in compliance with the law. This statement comes in the wake of an investigation launched by the Enforcement Directorate (ED) into allegations of foreign direct investment (FDI) violations by the company.
In an email sent to all employees, Raveendran stated that “We would like to assure you that all transactions related to Byju’s have been fully compliant with applicable laws, including the Foreign Exchange Management Act (FEMA).” He also added that the company had always been transparent in its dealings and was committed to upholding the highest standards of corporate governance.
The ED probe was launched after a complaint was received alleging that Byju’s had violated FDI rules by bringing in foreign funds through opaque structures. The agency has since been scrutinizing the company’s financial transactions to determine whether any violations have occurred.
Byju’s has been at the forefront of India’s edtech revolution, with its platform offering online courses and study materials to students across the country. The company has seen explosive growth in recent years, with a reported valuation of over $16 billion.
However, concerns have been raised about the transparency of some of the funding that has flowed into the edtech sector. Byju’s has denied any wrongdoing, stating that it has always complied with all regulations. In his email, Raveendran reiterated the company’s commitment to transparency and compliance, stating that “We will continue to cooperate with all regulatory authorities and remain committed to maintaining the highest standards of corporate governance.”
The ED probe is part of a wider crackdown by Indian authorities on alleged FDI violations by companies operating in the edtech space. Other edtech companies, including Unacademy and Vedantu, have also come under scrutiny.
The Indian government has been stepping up its efforts to regulate the country’s rapidly growing tech sector, with new regulations and guidelines being introduced to ensure compliance with laws and regulations. The proposed Digital India Act, which is expected to be released in draft form by the end of July, is one such initiative. The act is expected to cover issues such as data protection, cybersecurity, and digital payments.
In the meantime, companies like Byju’s will have to navigate the current regulatory landscape and ensure that their operations are fully compliant with the law. Raveendran’s statement to employees is likely an attempt to reassure them that the company is taking the ED probe seriously and is confident in its compliance with regulations.
As the edtech sector continues to grow and attract investor interest, it is likely that regulators will keep a close eye on the industry to ensure that it is operating in a transparent and compliant manner.
