“Byju’s Faces ₹9,000 Crore Notice Over Alleged Foreign Funding Breach”
Byju’s, a prominent edtech firm, faces scrutiny as the ED issues a notice demanding ₹9,000 crore for alleged violations in foreign funding laws. Byju’s denies receiving any official communication and contends against claims of breaching FEMA regulations amidst a backdrop of mounting legal and financial challenges.
The Enforcement Directorate (ED) has issued a notice to leading edtech firm Byju’s, seeking payment of ₹9,000 crore for purportedly breaching foreign funding regulations. Byju’s, however, has refuted claims of receiving any such directive from the authorities.
Sources from the ED allege that Byju’s, over a span from 2011 to 2023, received approximately ₹28,000 crore in foreign direct investment (FDI) while reportedly remitting about ₹9,754 crore abroad as overseas direct investment, prompting the ED’s recent notice.
In response, Byju’s has staunchly denied assertions of any Foreign Exchange Management Act (FEMA) violation, addressing media reports through an official statement, affirming that they have not been officially communicated by the authorities regarding this matter.
This development marks the latest in a series of challenges faced by the once highly valued Indian start-up.
Founded in 2011 by engineers and educators Byju Raveendran and Divya Gokulnath, Byju’s initially focused on online learning programs for competitive exams. Subsequently, its ascent was propelled with the launch of the Byju’s learning app in 2015, followed by apps targeting children’s math skills and parental tracking.
Despite its rapid expansion and popularity during the pandemic-induced digital education shift, Byju’s experienced a downturn, attributed partly to substantial losses in 2021, a decline in value, and heightened scrutiny from law enforcement agencies.
The edtech giant faced a barrage of criticisms, including allegations of coercive sales tactics towards parents, mistreatment of employees, layoffs, and legal disputes, both domestically and internationally.
The ED’s action follows earlier raids on Byju’s Bengaluru office earlier this year due to suspected foreign funding violations, adding to the company’s growing list of legal woes and financial challenges.
Sources By Agencies
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