ED raids BYJU's under FEMA, yet to submit financial results since FY21

As the Enforcement Directorate (ED) conducted searches under FEMA at three premises related to BYJU's, the ed-tech major is yet to submit its financial statements since the 2020-21 fiscal.

Think & Learn Pvt Ltd, BYJU's parent company, is yet to disclose the audited financial accounts for the last two fiscal years.

BYJU's was also not able to meet its March 2023 deadline to achieve group-level profitability, as it envisioned in its earnings in October last year, amid delayed results.

The company, which has sacked thousands of employees to date and has taken deeper cuts, was still unable to achieve profitability at group level amid mounting losses.

At a group level, BYJU's had said in October that its top priority was to achieve "overall profitability by March 2023".

Between April and July 2022, the company logged a revenue of Rs 4,530 crore. Post that, there has been no communication from the company about the pending results.

The edtech unicorn reported a loss of Rs 4,588 crore for the fiscal year ended March 31, 2021.

BYJU's had claimed that it clocked gross revenues of nearly Rs 10,000 crore in FY22.

Earlier this month, sources had told IANS that the edtech major is set to raise around $500-$700 million in its latest funding round at a flat valuation of $22 billion, led by a couple of top private equity firms and sovereign wealth funds.

However, there has been no communication from the company regarding the fresh funding.

The latest funding round news appeared as the company is aiming to repay a huge $1.2 billion term loan B it had secured in November 2021.

Meanwhile, the ED said in its release that the company has received foreign direct investment to the tune of Rs 28,000 crore during the period from 2011 to 2023.

"Further, the company has also remitted Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment," said the release.

Meanwhile, BYJU'S said that the recent visit by officials from the ED to one of their offices in Bengaluru was related to a routine inquiry under FEMA.

"We have been completely transparent with the authorities and have provided them with all the information they have requested for. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics," the company spokesperson said in a statement.

--IANS

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